Fortnightly - J.P. Morganhttp://www.fortnightly.com/tags/jp-morgan
enTransactions (November 2014)http://www.fortnightly.com/fortnightly/2014/11/transactions-november-2014
<div class="field field-name-field-import-volume field-type-node-reference field-label-inline clearfix"><div class="field-label">Magazine Volume:&nbsp;</div><div class="field-items"><div class="field-item even">Fortnightly Magazine - November 2014</div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even"><p><strong>PPL Montana</strong> sold its hydroelectric facilities to <strong>NorthWestern Energy</strong> for $900 million; <strong>Chesapeake Utilities</strong> sold <strong>BravePoint</strong>; <strong>Echelon</strong> completed the sale of its grid operations to <strong>S&amp;T AG</strong>; Plus a debt redemption from <strong>Virginia Electric &amp; Power</strong>, a private placement offering from <strong>DPL</strong>, and an IPO for <strong>Dominion Midstream Partners</strong>.</p>
</div></div></div><div class="field field-name-field-article-category field-type-taxonomy-term-reference field-label-above clearfix"><h3 class="field-label">Category (Actual): </h3><ul class="links"><li class="taxonomy-term-reference-0"><a href="/article-categories/stocks-equity-markets">Stocks / Equity Markets</a></li><li class="taxonomy-term-reference-1"><a href="/article-categories/transactions">Transactions</a></li><li class="taxonomy-term-reference-2"><a href="/article-categories/bonds-debt-markets">Bonds / Debt Markets</a></li></ul></div><div class="field field-name-field-members-only field-type-list-boolean field-label-above"><div class="field-label">Viewable to All?:&nbsp;</div><div class="field-items"><div class="field-item even"></div></div></div><div class="field field-name-field-article-featured field-type-list-boolean field-label-above"><div class="field-label">Is Featured?:&nbsp;</div><div class="field-items"><div class="field-item even"></div></div></div><div class="field field-name-field-department field-type-taxonomy-term-reference field-label-above clearfix"><h3 class="field-label">Department: </h3><ul class="links"><li class="taxonomy-term-reference-0"><a href="/department/transactions">Transactions</a></li></ul></div><div class="field field-name-field-image-picture field-type-image field-label-above"><div class="field-label">Image Picture:&nbsp;</div><div class="field-items"><div class="field-item even"><img src="http://www.fortnightly.com/sites/default/files/1411-TR.jpg" width="2248" height="2117" alt="" /></div></div></div><div class="field field-name-field-fortnightly-40 field-type-list-boolean field-label-above"><div class="field-label">Is Fortnightly 40?:&nbsp;</div><div class="field-items"><div class="field-item even"></div></div></div><div class="field field-name-field-law-lawyers field-type-list-boolean field-label-above"><div class="field-label">Is Law &amp; Lawyers:&nbsp;</div><div class="field-items"><div class="field-item even"></div></div></div><div class="field field-name-field-tags field-type-taxonomy-term-reference field-label-above clearfix">
<div class="field-label">Tags:&nbsp;</div>
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<a href="/tags/echelon">Echelon</a><span class="pur_comma">, </span><a href="/tags/ppl-montana">PPL Montana</a><span class="pur_comma">, </span><a href="/tags/chesapeake">Chesapeake</a><span class="pur_comma">, </span><a href="/tags/virginia">Virginia</a><span class="pur_comma">, </span><a href="/tags/dpl">DPL</a><span class="pur_comma">, </span><a href="/tags/dominion">Dominion</a><span class="pur_comma">, </span><a href="/tags/st-ag">S&amp;T AG</a><span class="pur_comma">, </span><a href="/tags/northwestern">NorthWestern</a><span class="pur_comma">, </span><a href="/tags/bravepoint">BravePoint</a><span class="pur_comma">, </span><a href="/tags/barclays">Barclays</a><span class="pur_comma">, </span><a href="/tags/citigroup">Citigroup</a><span class="pur_comma">, </span><a href="/tags/jp-morgan">J.P. Morgan</a><span class="pur_comma">, </span><a href="/tags/bofa-merrill-lynch">BofA Merrill Lynch</a><span class="pur_comma">, </span><a href="/tags/goldman">Goldman</a><span class="pur_comma">, </span><a href="/tags/sachs">Sachs</a><span class="pur_comma">, </span><a href="/tags/ubs">UBS</a><span class="pur_comma">, </span><a href="/tags/morgan-stanley">Morgan Stanley</a><span class="pur_comma">, </span><a href="/tags/rbc-capital">RBC Capital</a><span class="pur_comma">, </span><a href="/tags/scotiabank">Scotiabank</a><span class="pur_comma">, </span><a href="/tags/howard-weil">Howard Weil</a> </div>
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Sat, 01 Nov 2014 01:36:23 +0000meacott18396 at http://www.fortnightly.comTransactions (July 2014)http://www.fortnightly.com/fortnightly/2014/07/transactions-july-2014
<div class="field field-name-field-import-volume field-type-node-reference field-label-inline clearfix"><div class="field-label">Magazine Volume:&nbsp;</div><div class="field-items"><div class="field-item even">Fortnightly Magazine - July 2014</div></div></div><div class="field field-name-field-import-image field-type-image field-label-above"><div class="field-label">Image:&nbsp;</div><div class="field-items"><div class="field-item even"><img src="http://www.fortnightly.com/sites/default/files/1407-TR.jpg" width="1125" height="1233" alt="" /></div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even"><p><strong>First Solar</strong> sold the 50-MW Macho Springs Solar Power Plant to a <strong>Southern Company</strong> subsidiary. <strong>DTE Energy</strong> purchased one of the Pheasant Run wind parks. <strong>Dominion</strong> acquired two stand-alone solar energy developments in southwest Tennessee. With asset sales by <strong>Suzlon Group</strong>, <strong>NextEra Energy Resources</strong>, and <strong>Strata Solar</strong>, and debt offerings by <strong>ITC Holdings</strong> and <strong>SunEdison</strong>.</p>
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</div></div></div><div class="field field-name-field-article-category field-type-taxonomy-term-reference field-label-above clearfix"><h3 class="field-label">Category (Actual): </h3><ul class="links"><li class="taxonomy-term-reference-0"><a href="/article-categories/transactions">Transactions</a></li></ul></div><div class="field field-name-field-members-only field-type-list-boolean field-label-above"><div class="field-label">Viewable to All?:&nbsp;</div><div class="field-items"><div class="field-item even"></div></div></div><div class="field field-name-field-article-featured field-type-list-boolean field-label-above"><div class="field-label">Is Featured?:&nbsp;</div><div class="field-items"><div class="field-item even"></div></div></div><div class="field field-name-field-department field-type-taxonomy-term-reference field-label-above clearfix"><h3 class="field-label">Department: </h3><ul class="links"><li class="taxonomy-term-reference-0"><a href="/department/transactions">Transactions</a></li></ul></div><div class="field field-name-field-fortnightly-40 field-type-list-boolean field-label-above"><div class="field-label">Is Fortnightly 40?:&nbsp;</div><div class="field-items"><div class="field-item even"></div></div></div><div class="field field-name-field-law-lawyers field-type-list-boolean field-label-above"><div class="field-label">Is Law &amp; Lawyers:&nbsp;</div><div class="field-items"><div class="field-item even"></div></div></div><div class="field field-name-field-tags field-type-taxonomy-term-reference field-label-above clearfix">
<div class="field-label">Tags:&nbsp;</div>
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<a href="/tags/first-solar">First Solar</a><span class="pur_comma">, </span><a href="/tags/suzion-group">Suzion Group</a><span class="pur_comma">, </span><a href="/tags/nextera">NextEra</a><span class="pur_comma">, </span><a href="/tags/itc-holdings">ITC Holdings</a><span class="pur_comma">, </span><a href="/tags/sunedison">SunEdison</a><span class="pur_comma">, </span><a href="/tags/southern-power">Southern Power</a><span class="pur_comma">, </span><a href="/tags/turner-renewalbe">Turner Renewalbe</a><span class="pur_comma">, </span><a href="/tags/dte-energy">DTE Energy</a><span class="pur_comma">, </span><a href="/tags/barclays">Barclays</a><span class="pur_comma">, </span><a href="/tags/credit-suisse">Credit Suisse</a><span class="pur_comma">, </span><a href="/tags/jp-morgan">J.P. Morgan</a><span class="pur_comma">, </span><a href="/tags/morgan-stanley">Morgan Stanley</a><span class="pur_comma">, </span><a href="/tags/deutsche-bank-securities">Deutsche Bank Securities</a><span class="pur_comma">, </span><a href="/tags/wells-fargo-securities">Wells Fargo Securities</a> </div>
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Sun, 29 Jun 2014 15:09:54 +0000meacott17381 at http://www.fortnightly.comTransactions (March 2014)http://www.fortnightly.com/fortnightly/2014/03/transactions-march-2014
<div class="field field-name-field-import-volume field-type-node-reference field-label-inline clearfix"><div class="field-label">Magazine Volume:&nbsp;</div><div class="field-items"><div class="field-item even">Fortnightly Magazine - March 2014</div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even"><p><strong>SCE&amp;G</strong> acquires larger share of VC Summer nuclear project; <strong>APS</strong> buys <strong>SCE's</strong> share of Four Corners power plant; <strong>Allete</strong> (<strong>Minnesota Power</strong>) acquires from <strong>AES</strong> 231 MW of wind farms in four states; <strong>EdF</strong> acquires 194-MW Texas wind project; <strong>NRG</strong> issues $1.1 billion in bonds; <strong>ComEd</strong> floats $650 million in two tranches; plus transactions involving <strong>TransCanada</strong>, <strong>Alterra</strong>, <strong>PSEG</strong>, and others totaling $3.4 billion.</p>
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</div></div></div><div class="field field-name-field-article-category field-type-taxonomy-term-reference field-label-above clearfix"><h3 class="field-label">Category (Actual): </h3><ul class="links"><li class="taxonomy-term-reference-0"><a href="/article-categories/transactions">Transactions</a></li><li class="taxonomy-term-reference-1"><a href="/article-categories/mergers-acquisitions">Mergers &amp; Acquisitions</a></li><li class="taxonomy-term-reference-2"><a href="/article-categories/bonds-debt-markets">Bonds / Debt Markets</a></li></ul></div><div class="field field-name-field-members-only field-type-list-boolean field-label-above"><div class="field-label">Viewable to All?:&nbsp;</div><div class="field-items"><div class="field-item even"></div></div></div><div class="field field-name-field-article-featured field-type-list-boolean field-label-above"><div class="field-label">Is Featured?:&nbsp;</div><div class="field-items"><div class="field-item even"></div></div></div><div class="field field-name-field-department field-type-taxonomy-term-reference field-label-above clearfix"><h3 class="field-label">Department: </h3><ul class="links"><li class="taxonomy-term-reference-0"><a href="/department/transactions">Transactions</a></li></ul></div><div class="field field-name-field-image-picture field-type-image field-label-above"><div class="field-label">Image Picture:&nbsp;</div><div class="field-items"><div class="field-item even"><img src="http://www.fortnightly.com/sites/default/files/1403-TRa.jpg" width="1125" height="1394" alt="" /></div></div></div><div class="field field-name-field-fortnightly-40 field-type-list-boolean field-label-above"><div class="field-label">Is Fortnightly 40?:&nbsp;</div><div class="field-items"><div class="field-item even"></div></div></div><div class="field field-name-field-law-lawyers field-type-list-boolean field-label-above"><div class="field-label">Is Law &amp; Lawyers:&nbsp;</div><div class="field-items"><div class="field-item even"></div></div></div><div class="field field-name-field-tags field-type-taxonomy-term-reference field-label-above clearfix">
<div class="field-label">Tags:&nbsp;</div>
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<a href="/tags/santee-cooper">Santee Cooper</a><span class="pur_comma">, </span><a href="/tags/transcanada">TransCanada</a><span class="pur_comma">, </span><a href="/tags/integrys">Integrys</a><span class="pur_comma">, </span><a href="/tags/southern-california">Southern California</a><span class="pur_comma">, </span><a href="/tags/canadian-solar-solutions">Canadian Solar Solutions</a><span class="pur_comma">, </span><a href="/tags/alterra-power">Alterra Power</a><span class="pur_comma">, </span><a href="/tags/aes">AES</a><span class="pur_comma">, </span><a href="/tags/cielo-wind">Cielo Wind</a><span class="pur_comma">, </span><a href="/tags/nrg-energy">NRG Energy</a><span class="pur_comma">, </span><a href="/tags/comed">ComEd</a><span class="pur_comma">, </span><a href="/tags/southern-carolina-electric">Southern Carolina Electric</a><span class="pur_comma">, </span><a href="/tags/scotiabank">Scotiabank</a><span class="pur_comma">, </span><a href="/tags/bmo">BMO</a><span class="pur_comma">, </span><a href="/tags/capital-markets">capital markets</a><span class="pur_comma">, </span><a href="/tags/rbc">RBC</a><span class="pur_comma">, </span><a href="/tags/balfour-beatty">Balfour Beatty</a><span class="pur_comma">, </span><a href="/tags/arizona-public-service">Arizona Public Service</a><span class="pur_comma">, </span><a href="/tags/tokai-carbon">Tokai Carbon</a><span class="pur_comma">, </span><a href="/tags/fiera-axium">Fiera Axium</a><span class="pur_comma">, </span><a href="/tags/allete">Allete</a><span class="pur_comma">, </span><a href="/tags/edt-renewable">EDT Renewable</a><span class="pur_comma">, </span><a href="/tags/pseg-0">PSEG</a><span class="pur_comma">, </span><a href="/tags/bnp-paribas">BNP Paribas</a><span class="pur_comma">, </span><a href="/tags/jp-morgan">J.P. Morgan</a><span class="pur_comma">, </span><a href="/tags/scotia-capital">Scotia Capital</a> </div>
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Mon, 03 Mar 2014 01:12:38 +0000meacott17069 at http://www.fortnightly.comTransactions (June 2013)http://www.fortnightly.com/fortnightly/2013/06/transactions-june-2013
<div class="field field-name-field-import-volume field-type-node-reference field-label-inline clearfix"><div class="field-label">Magazine Volume:&nbsp;</div><div class="field-items"><div class="field-item even">Fortnightly Magazine - June 2013</div></div></div><div class="field field-name-field-import-image field-type-image field-label-above"><div class="field-label">Image:&nbsp;</div><div class="field-items"><div class="field-item even"><img src="http://www.fortnightly.com/sites/default/files/1306-TR.jpg" width="1500" height="1587" alt="" /></div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even"><p><strong>Atlantic Power</strong> sells 800 MW of generating capacity in Florida and Texas; <strong>Goldman Sachs</strong> buys Imperial Valley project from <strong>FirstSolar</strong>; <strong>Duke</strong> acquires two solar plants in California; <strong>Southern Company</strong> and <strong>Turner Renewable Energy</strong> buy Campo Verde project; plus other deals and issues totaling more than $2 billion.</p>
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</div></div></div><div class="field field-name-field-article-category field-type-taxonomy-term-reference field-label-above clearfix"><h3 class="field-label">Category (Actual): </h3><ul class="links"><li class="taxonomy-term-reference-0"><a href="/article-categories/transactions">Transactions</a></li><li class="taxonomy-term-reference-1"><a href="/article-categories/mergers-acquisitions">Mergers &amp; Acquisitions</a></li><li class="taxonomy-term-reference-2"><a href="/article-categories/bonds-debt-markets">Bonds / Debt Markets</a></li></ul></div><div class="field field-name-field-members-only field-type-list-boolean field-label-above"><div class="field-label">Viewable to All?:&nbsp;</div><div class="field-items"><div class="field-item even"></div></div></div><div class="field field-name-field-article-featured field-type-list-boolean field-label-above"><div class="field-label">Is Featured?:&nbsp;</div><div class="field-items"><div class="field-item even"></div></div></div><div class="field field-name-field-department field-type-taxonomy-term-reference field-label-above clearfix"><h3 class="field-label">Department: </h3><ul class="links"><li class="taxonomy-term-reference-0"><a href="/department/transactions">Transactions</a></li></ul></div><div class="field field-name-field-fortnightly-40 field-type-list-boolean field-label-above"><div class="field-label">Is Fortnightly 40?:&nbsp;</div><div class="field-items"><div class="field-item even"></div></div></div><div class="field field-name-field-law-lawyers field-type-list-boolean field-label-above"><div class="field-label">Is Law &amp; Lawyers:&nbsp;</div><div class="field-items"><div class="field-item even"></div></div></div><div class="field field-name-field-tags field-type-taxonomy-term-reference field-label-above clearfix">
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<a href="/tags/atlantic-power">Atlantic Power</a><span class="pur_comma">, </span><a href="/tags/john-cock">John Cock</a><span class="pur_comma">, </span><a href="/tags/rockland-capital">Rockland Capital</a><span class="pur_comma">, </span><a href="/tags/at">AT</a><span class="pur_comma">, </span><a href="/tags/jhi">JHI</a><span class="pur_comma">, </span><a href="/tags/goldman-sachs">Goldman Sachs</a><span class="pur_comma">, </span><a href="/tags/gs">GS</a><span class="pur_comma">, </span><a href="/tags/energy-power-partners">Energy Power Partners</a><span class="pur_comma">, </span><a href="/tags/solarworld">SolarWorld</a><span class="pur_comma">, </span><a href="/tags/northlight-power">Northlight Power</a><span class="pur_comma">, </span><a href="/tags/first-solar">First Solar</a><span class="pur_comma">, </span><a href="/tags/fslr">FSLR</a><span class="pur_comma">, </span><a href="/tags/nisource">NiSource</a><span class="pur_comma">, </span><a href="/tags/ni">NI</a><span class="pur_comma">, </span><a href="/tags/aes">AES</a><span class="pur_comma">, </span><a href="/tags/xcel-energy">Xcel Energy</a><span class="pur_comma">, </span><a href="/tags/xel">XEL</a><span class="pur_comma">, </span><a href="/tags/gregory-cogeneration">Gregory Cogeneration</a><span class="pur_comma">, </span><a href="/tags/highlander-solar">Highlander Solar</a><span class="pur_comma">, </span><a href="/tags/north-star-solar">North Star Solar</a><span class="pur_comma">, </span><a href="/tags/campo-verde-solar">Campo Verde Solar</a><span class="pur_comma">, </span><a href="/tags/nrg-energy">NRG Energy</a><span class="pur_comma">, </span><a href="/tags/nrg">NRG</a><span class="pur_comma">, </span><a href="/tags/quantum-utility-generation">Quantum Utility Generation</a><span class="pur_comma">, </span><a href="/tags/duke">Duke</a><span class="pur_comma">, </span><a href="/tags/duk">DUK</a><span class="pur_comma">, </span><a href="/tags/southern-power">Southern Power</a><span class="pur_comma">, </span><a href="/tags/so">SO</a><span class="pur_comma">, </span><a href="/tags/turner-renewable-energy">Turner Renewable Energy</a><span class="pur_comma">, </span><a href="/tags/barclays">Barclays</a><span class="pur_comma">, </span><a href="/tags/credit-suisse">Credit Suisse</a><span class="pur_comma">, </span><a href="/tags/jp-morgan">J.P. Morgan</a><span class="pur_comma">, </span><a href="/tags/keybanc">KeyBanc</a><span class="pur_comma">, </span><a href="/tags/loop-capital">Loop Capital</a><span class="pur_comma">, </span><a href="/tags/scotia">Scotia</a><span class="pur_comma">, </span><a href="/tags/mellon">Mellon</a><span class="pur_comma">, </span><a href="/tags/fifth-third">Fifth Third</a><span class="pur_comma">, </span><a href="/tags/huntington">Huntington</a> </div>
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Sun, 02 Jun 2013 19:47:07 +0000meacott16623 at http://www.fortnightly.comNot-So-Green Superhighwayhttp://www.fortnightly.com/fortnightly/2012/02/not-so-green-superhighway
<div class="field field-name-field-import-deck field-type-text-long field-label-inline clearfix"><div class="field-label">Deck:&nbsp;</div><div class="field-items"><div class="field-item even"><p>Unforeseen consequences of dedicated renewable energy transmission.</p>
</div></div></div><div class="field field-name-field-import-byline field-type-text-long field-label-inline clearfix"><div class="field-label">Byline:&nbsp;</div><div class="field-items"><div class="field-item even"><p>Roger H. Bezdek and Robert M. Wendling</p>
</div></div></div><div class="field field-name-field-import-bio field-type-text-long field-label-inline clearfix"><div class="field-label">Author Bio:&nbsp;</div><div class="field-items"><div class="field-item even"><p><a href="mailto:rbezdek@misi-net.com"><b>Roger H. Bezdek </b></a>is president of Management Information Services Inc., and <b>Robert M. Wendling</b> is a vice president with the firm.</p>
</div></div></div><div class="field field-name-field-import-volume field-type-node-reference field-label-inline clearfix"><div class="field-label">Magazine Volume:&nbsp;</div><div class="field-items"><div class="field-item even">Fortnightly Magazine - February 2012</div></div></div><div class="field field-name-field-import-image field-type-image field-label-above"><div class="field-label">Image:&nbsp;</div><div class="field-items"><div class="field-item even"><img src="http://www.fortnightly.com/sites/default/files/article_images/1202/images/1202-FEA2-fig1.jpg" width="1016" height="705" alt="" /></div><div class="field-item odd"><img src="http://www.fortnightly.com/sites/default/files/article_images/1202/images/1202-FEA2-fig2.jpg" width="1018" height="693" alt="" /></div><div class="field-item even"><img src="http://www.fortnightly.com/sites/default/files/article_images/1202/images/1202-FEA2-fig3.jpg" width="2061" height="1488" alt="" /></div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even"><p>Growth in renewable electricity (RE) generation will require major expansion of electricity transmission grids, and in the U.S. this could require building an additional 20,000 miles of transmission over the next decade—double what’s currently planned. To facilitate this, government policymakers are planning to build what are sometimes called “green” transmission lines that are restricted to carrying electricity generated by renewable sources, primarily wind and solar.</p>
<p>However, state and local jurisdictions are resisting siting of transmission unless it serves local constituents and existing power plants. If such transmission is built and local access is allowed, then the major beneficiaries of the added transmission might be existing power generation facilities, especially coal plants. Many of these facilities have very low electricity generating costs and their capacity factors are transmission-constrained. Their access to added transmission lines could enable them to sell electric power at rates against which RE can’t compete.</p>
<h4>20,000 Miles of Wire</h4>
<p>JP Morgan studied a possible federal renewable energy standard (RES) and its impact on the growth rate of RE.<sup>1</sup> We used JP Morgan data to estimate the potential impact of an RES and the transmission required to facilitate it on the existing fleet of power plants. The analysis focused primarily on coal plants because they can increase their capacity factors, whereas U.S. nuclear plants already have capacity factors above 90 percent. Given the location of the coal plants throughout the U.S. and their current capacity factors, we estimated the impact of expanded electricity transmission lines on RE generation and costs and on conventional electricity generation and costs.</p>
<p>The locations of the RE central station technologies and their distances from major load centers largely determine the new transmission that will be required. Geothermal will be installed in a small number of Western states,<sup>2</sup> while biomass will be installed primarily in the northern Great Plains, the Pacific Northwest, and perhaps parts of the South. Solar thermal (ST) and photovoltaics (PV) will be installed in some Western and Southwestern states, and wind will be installed primarily in the northern Great Plains.</p>
<p>The major load centers are primarily metropolitan areas in the coastal states, the Boston-Washington corridor, the West Coast corridor, and major Midwestern cities. In general, increased transmission capability is desirable, because a robust interstate electric transmission system is in everyone’s interest—consumers, power producers, and governments. An expanded transmission network will allow for power system growth, provide greater flexibility in expanding generation at existing plant sites, and facilitate construction of new generating plants at optimal locations.</p>
<p>However, there’s a mismatch between RE resources and load centers: Most of the best RE sites are west of the Mississippi river, but most of the load centers are east of the river or on the West Coast. Even West Coast load centers are far from the best RE sites. We estimated how much new transmission needs to be built to transmit RE electricity to the load centers, and made assumptions as to what RE electricity will be transmitted to which load centers. While some RE plants can serve load centers in Southern California, Phoenix, Denver, Salt Lake City, etc., most of the RE electricity produced will have to be transmitted to load centers east of the Mississippi. Thus, major new transmission lines will be required from the Southwest and northern Great Plains states to load centers in the Midwest and the East. Most of these lines don’t currently exist, and much new transmission will have to be built over the next decade to transmit renewable energy <i>(see Figure 1)</i>.</p>
<p>The distances involved are significant; for example:</p>
<p>• 700 to 1,000 miles from the northern Great Plains to the Midwestern load centers;</p>
<p>• 1,200 to 1,500 miles from the northern Great Plains to the load centers in the Boston-Washington corridor;</p>
<p>• 1,000 to 1,300 miles from the northern Great Plains to the West Coast load centers;</p>
<p>• 1,100 to 1,400 miles from the Southwest to the Midwestern load centers;</p>
<p>• 1,600 to 2,000 miles from the Southwest to load centers in the Boston-Washington corridor; and</p>
<p>• 1,600 to 1,900 miles from Iowa to the West Coast load centers.</p>
<p>It’s difficult to estimate precisely how much additional transmission a mandated RES would require. Nevertheless, given the distances between RE generation sites and major load centers, the new transmission required to enable an RES could total 10,000 to 20,000 miles of lines. To put this in perspective, NERC estimates that planned transmission additions in the U.S. will total about 20,000 miles through 2019.<sup>3</sup> Thus, the transmission lines required by an RES could nearly double transmission requirements over the next decade.</p>
<p>There are two major problems associated with the required new lines. First, they will have to cross numerous states to reach the load centers. Permitting would require approval of the states, local authorities, and impacted landowners, who have often thwarted transmission expansion in the past. To avoid delays, the federal government would need authority to mandate routes and to declare eminent domain. While FERC has some authority, it isn’t clear how long challenges to federal preemption might last, slowing final route approvals and transmission construction. Granting this kind of federal preemption likely will cause substantial political controversy, the duration of which isn’t predictable.</p>
<p>Second, investors won’t commit funds to install RE without the assurance that the necessary transmission lines will be available, and federal exercise of eminent domain ahead of RE facility construction might prove to be essential.</p>
<p>Coincident with the construction of the transmission and RE plants must be the addition of backup power supplies,<sup>4</sup> firm demand-response capacity, or both. If those resource additions are delayed, then the RE power generated might have difficulty accessing markets, because large quantities of widely varying electric power from wind and solar facilities might exceed the ability of existing power grids to accommodate.</p>
<p>The costs of backup power resources, as well as the new transmission capacity, ultimately will be charged to power consumers. The capacity of the transmission lines needed to move RE power must be sized to at least the nameplate capacity of the RE technologies, if the maximum amount of RE power is to reach markets. However, the average capacity factor of, for example, wind in the Great Plains is less than 40 percent, which means that more than 60 percent of the transmission capacity would be unused, resulting in much higher transmission costs than if the lines were more fully loaded. Locating backup power generating capacity near RE sites can make greater use of transmission capacity and reduce cost penalties.</p>
<p>In principle, once the approximate number of miles of required new transmission is estimated, the total cost can be projected by multiplying by the average cost per mile. Unfortunately, transmission costs per mile vary greatly <i>(see Figure 2)</i>. Most of the new RE transmission will be through rural or semi-rural areas, but as transmission lines approach major load centers costs will escalate rapidly.</p>
<p>Using FERC estimates of required new transmission and independent figures for transmission costs, analysis yields an estimated cost of about $80 billion to construct the 14,500 miles of new transmission that FERC expects will be necessary by 2016.<sup>5</sup> With this estimate as a benchmark, the new transmission required by an RES could cost between about $50 and $100 billion.</p>
<p>However, even this estimate might be conservative, and transmission costs to enable an RES might be much higher.<sup>6</sup> Nevertheless, this estimate is generally comparable to others that have been developed.<sup>7</sup></p>
<h4>Coal Plants and Green Transmission</h4>
<p>If additional transmission is built to accommodate an RES, a key question involves whether these transmission lines will be restricted to carrying only RE-generated electricity. Green transmission bills have been introduced in Congress to restrict new transmission exclusively to RE-generated electricity.<sup>8</sup> Congress also has enhanced the power of the federal government to enable transmission projects with multi-state importance to be assessed on more broadly based national interests, and the <i>Energy Policy Act</i> of 2005 (EPAct) provided FERC “backstop” transmission siting authority. States retain primary siting responsibility, but under certain circumstances the applicant may seek siting authority from FERC.<sup>9</sup> However, it isn’t clear that EPAct provides a meaningful federal alternative if a state denies a transmission project.</p>
<p>For example, Arizona regulators rejected a transmission line to connect Arizona generation with California electric consumers. In 2005, Edison International proposed a power line that would stretch from a substation 50 miles west of Phoenix, Ariz., to Palm Springs, Calif. Edison contended that the line would ensure reliable supplies of electricity for Southern California and bring the region renewable energy. However, Arizona opposed Edison’s proposed power line. The dispute over the $774 million project initiated a struggle in Washington, D.C., over whether the federal government should seize more authority from states over the approval of transmission lines, since state regulators want to protect their authority.<sup>10</sup> Notably, after Arizona regulators rejected the proposal, Edison offered concessions to give Arizona utilities access to the line. This might indicate the ultimate fate of green transmission mandates.</p>
<p>Further, a federal court ruling might have negated FERC’s backstop authority, and this decision could enable states to deprive FERC of backstop siting authority by timely rejection of a transmission project application.<sup>11</sup> Thus, there might be no way to prevent existing coal plants from using transmission lines built to serve RE facilities that can use them, on average, only about 30 percent of the time—nor is it economically desirable to do so, especially if that capacity allows otherwise inaccessible generation to reach power markets.</p>
<p>It isn’t known precisely how much unused coal plant generation capacity would be available for use if current transmission constraints were alleviated. A meaningful calculation would require detailed analysis of the entire electric power system and how it’s likely to evolve. Further, proper electric system management requires a 15 percent excess capacity margin, and a detailed analysis of the whole system would be needed to determine how much of the reserve capacity in various parts of the country is assigned to coal plants versus other power sources.</p>
<p>Any excess generation capacity that currently exists likely will become more fully utilized as the economy recovers, and eventually new generation capacity will be required.<sup>12</sup> The potential implications of new transmission lines for existing coal plant capacity factors depend on geographic factors related to RE resources in each region <i>(see Figure 3)</i>.</p>
<p>• For biomass and wind generation going from the northern Great Plains states to the Midwest load centers, lines would have to pass close to coal plants in North Dakota, Minnesota, Wisconsin, Iowa, Missouri, Illinois, Indiana, Kentucky, Ohio, and West Virginia.</p>
<p>• For biomass and wind generation going from the northern Great Plains states to load centers in the Boston-Washington corridor, lines would have to pass close to coal plants in North Dakota, Minnesota, Wisconsin, Iowa, Missouri, Illinois, Indiana, Kentucky, Ohio, West Virginia, and Pennsylvania.</p>
<p>• For biomass and wind generation going from the northern Great Plains states to West Coast load centers, lines would have to pass close to coal plants in North Dakota, Minnesota, Montana, Utah, Colorado, Wyoming, and Arizona.</p>
<p>• For geothermal, ST, and PV generation transmitted from the Southwest to the Midwestern load centers, lines would have to pass close to coal plants in Arizona, New Mexico, Utah, Colorado, Kansas, Nebraska, Missouri, Illinois, Indiana, Kentucky, Ohio, and West Virginia.</p>
<p>• For geothermal, ST, and PV generation transmitted from the Southwest to the West Coast load centers, lines would have to pass close to coal plants in Arizona, New Mexico, Utah, and Colorado.</p>
<p>What does the proximity of new transmission lines to many existing coal plants imply for utilization of these plants? Ideally, an analysis would estimate the carrying capacity of the different lines, how close they are to which coal plants, the capacity utilization of each plant, the cost of electricity output from each plant, and projections for all of these, etc.</p>
<p>Alternately, a simpler analysis can use estimates of the average coal plant capacity factor and an average coal levelized cost of electricity (LCOE). Existing coal plants are, except for some large hydro projects, the least expensive means of electricity production. Coal plants produce about 50 percent of U.S. electricity, and 23 of the 25 power plants in the U.S. with the lowest operating costs are coal-fired. In states where coal is widely used, electricity production costs and rates are the lowest, and states using coal to generate most of their electricity have electric rates that are only about half those of other states. Thus, the current fleet of coal plants produces cheap electricity—4 to 6 cents per kWh, the average used in this analysis.</p>
<h4>Real Costs of Renewables</h4>
<p>Deriving accurate, comparable LCOE estimates for RE is difficult, and it might not even be possible to meaningfully compare the LCOEs of dispatchable and non-dispatchable energy sources. Renewables suffer from problems of low and highly variable capacity factors, intermittency, unreliability, need for storage and backup, requirements for expanded transmission, and reliance on government subsidies and government-mandated utility quotas.</p>
<p>For example, while coal plants can have capacity factors above 85 percent, the estimated capacity factor the Department of Energy’s Energy Information Administration (EIA) uses for wind is 34 percent. EIA assumes 31 percent for ST and 22 percent for PV. In its RES study, JP Morgan used slightly lower capacity factors: 30 percent for wind, 30 percent for ST, and 20 percent for PV. While these might be reasonable as national averages, they also might be somewhat high.<sup>13</sup> An accurate LCOE for RE must take into account these low capacity factors, but even such an adjustment might not fully account for the fact that few renewable resources actually might be available when they’re needed most.<sup>14 </sup></p>
<p>EIA’s levelized cost estimates for RE use a 31 percent capacity factor for wind, 31 percent for ST, and 22 percent for PV.<sup>15 </sup>However, if actual capacity factors are lower than this, these LCOE estimates have to be increased.</p>
<p>Further, it isn’t clear how backup power costs should be incorporated into RE LCOE estimates. Given the fact that many RE technologies are variable and non-dispatchable, near 100 percent backup might be required—as it is in Germany.<sup>16</sup> Further, given that RE resources might not be reliably available when they’re needed most, 24x7 spinning reserve or dedicated, firm demand response resources often might be required. This need for backup translates into a large RE premium—paying once for the RE system and again for either load-shedding capabilities or fossil fuel systems, which must be kept continually running at a low level to be able to quickly ramp up when needed. Thus, the total cost of such a system should include the cost of the RE system and the cost of the backup power system.<sup>17 </sup></p>
<p>Backup charges for RE can be substantial and are being imposed. For example, in 2009 BPA ruled that a new wind integration charge will be levied on all wind generators at a rate of 5.7 cents per kWh.<sup>18</sup> In July 2011, the agency reduced that rate to 5.43 cents. Previously, BPA charged some of its utility customers for conventional power reserves to back up intermittent wind power; however, the amount of wind on BPA’s system has grown rapidly, increasing both the need for reserves and the risks to system reliability. BPA found that increased size of the wind fleet was compounded by wind generators’ inability to accurately account for wind ramp events in their schedules, thereby requiring BPA to hold a significantly larger amount of reserves to provide balancing services. 5.43 cents per kWh is a significant increase; EIA estimates that the average annual electricity price in 2010 was 9.8 cents per kWh, so adding 5.43 cents per kWh would represent an increase of 43 percent. Current electricity rates in the Pacific Northwest are between 5 and 6 cents per kWh, so a surcharge of 5.43 cents effectively would double the delivered cost of power.</p>
<p>Thus, actual costs must include the costs of RE plus the imputed costs of backup power. Including backup would provide a dispatchable system, whose costs could be legitimately compared with coal and other baseload options, and if such costs are incorporated into the RE LCOE, these cost estimates would increase significantly.</p>
<p>There’s also the question of how the costs of increased RE transmission should be included in the RE LCOE. This issue is often framed as the difficulty of getting power from RE sites to the major demand centers on the coasts. Costly transmission lines will be needed to move RE to the major population centers, and there must be considerable redundancy in the new transmission lines to guard against damage due to natural disasters and terrorism. All of this entails considerable additional costs. As noted, legislation has been introduced for “green transmission” lines that would be restricted exclusively to renewable electricity.<sup>19</sup> While the feasibility of such proposals is questionable, if such lines are actually built it might be that all of their costs would have to be included in the RE LCOE.</p>
<h4>Coal Utilization Scenarios</h4>
<p>Added transmission could greatly impact the existing coal fleet.<sup>20</sup> Utilization of the existing coal fleet is currently about 72 to 74 percent. However, this can be increased to about 85 percent if there’s enough transmission to transmit the added coal generation to the load at nights and weekends.<sup>21</sup> Much current night and weekend load is handled by natural gas. Natural gas isn’t cost-competitive with coal, and is only used due to lack of adequate transmission from coal plants. Most of the underutilized coal capacity is in the middle U.S. and is stranded from the East Coast. U.S. coal capacity is about 310 GW, coal furnishes about 2 trillion kWh annually, and the U.S. consumes about 1.1 billion tons of coal annually.</p>
<p>If added transmission increases utilization of existing coal plants by 10 percent, coal could provide an additional 200 billion kWh and coal demand would increase by 100 million tons—even assuming no new coal plants are built.<sup>22 </sup></p>
<p>Analyzing two scenarios, and performing two sensitivity analyses for each, allows the potential impact of additional transmission on coal plant utilization to be estimated. The analysis assumes that additional RE transmission would enable capacity increases in between 25 and 50 percent of the plants in the existing coal fleet, with potential capacity increases of 5 percent and 15 percent.</p>
<p>If additional transmission built for RE generation enabled capacity increases in 25 percent of the existing coal fleet, the average capacity of the entire coal fleet could be increased by about 1.5 to 4 percent—4 GW to 12 GW. This could increase annual coal-fired generation by about 30 to 80 billion kWh, and increase annual coal demand by 25 to 75 million tons—even assuming no new coal plants are built.</p>
<p>If the additional transmission built for RE generation enabled capacity increases in 50 percent of the existing coal fleet, the average capacity of the coal fleet could be increased by about 3 to 8 percent—10 GW to 25 GW. This could increase annual coal-fired generation by about 60 to 160 billion kWh and increase coal demand by about 50 to 150 million tons—even assuming no new coal plants are built.</p>
<p>Using the means of these estimates, the expanded transmission required by RE would enable an increase in the average capacity of the existing coal fleet of about 15 GW (5 percent); an increase in annual coal-fired generation by 100 billion kWh; and an increase in annual coal demand of 57 million tons.</p>
<p>Thus, the new transmission required by RE could enable expansion of coal-fired generation by the equivalent of about 30 new coal plants by 2020. This expansion could be very rapid, since no new siting, permitting, or construction would be required. And the electricity produced would be inexpensive—about 5 cents per kWh.</p>
<h4>Green Policy Dilemmas</h4>
<p>An RES mandate could cause serious economic and policy dilemmas. A mandated RES requires not only a massive build of RE generating facilities over the coming decade but also, of necessity, a very large increment in transmission and requirements for near-100 percent backup. This will be very costly; the total, actual costs of achieving an RES by 2020 could exceed $500 billion—instead of the JP Morgan estimate of $275 billion. These are actual cost estimates and include the implicit costs of RE, such as federal and state government subsidies and mandated utility cross-subsidies.</p>
<p>This raises the question of what the actual, unsubsidized cost of the RE-generated electricity in 2020 is likely to be. Taking reliability, capacity factors, transmission requirements, and backup power requirements into account, the actual 2020 costs of the RE technologies could be twice as high as EIA estimates. The actual 2020 levelized cost of energy, in 2010 dollars, could be as high as 30 cents per kWh of onshore wind, and 50 cents for offshore wind; 80 cents for PV and 55 cents for ST; 16 cents for geothermal; and 17 cents for biomass.</p>
<p>This presents some interesting dilemmas.</p>
<p>The increased electricity generation from existing coal plants enabled by the new transmission would probably cost about 5 cents per kWh—three to 15 times cheaper than the likely costs of the RE generation. Even if some of the coal plants had to be retrofitted with additional environmental controls, they would produce electricity at prices that would still be an order of magnitude lower than the renewable electricity. By way of contrast, EIA projects that the average price of electricity in 2020 will be 10.7 cents per kWh.<sup>23</sup> Thus, in 2020, the newly-enabled coal generation could be about 50 percent cheaper than the average electricity price, whereas the renewable electricity could be from 50 percent to 800 percent higher than the average electricity price.</p>
<p>Total RE generation in 2020, rather than the 612 billion kW estimated by JP Morgan, might be closer to about 475 billion kWh—about 11 percent of the U.S. total. Increased transmission would enable an increase in annual coal-fired generation of about 100 billion kWh—about 21 percent of the incremental RE generation.</p>
<p>The dilemma arises because the coal-fired electricity could sell for a price that’s from three to 15 times less expensive than the renewable electricity. Based on cost alone, the rational consumer would prefer to purchase the coal-fired electricity instead of the renewable electricity, and the 100 billion kWh of coal-generated electricity could potentially displace 100 billion kWh of renewable electricity. Of course, in the real regulatory world actual electricity prices are weighted averages of costs from different sources and include various charges, fees, taxes, etc. Nevertheless, given the enormous cost differentials involved, it’s obvious that consumers would prefer to purchase coal-fired electricity—and large industrial and commercial customers might have the clout to enforce their desires.</p>
<p>What is likely to occur, and how will regulators react? First, if an additional 100 billion kWh of coal-generated electricity comes on line, what would happen to the more-expensive renewable electricity? If regulators choose to enforce an RES mandate, how would they set overall electricity prices? Would they blend the costs of the renewable electricity with those of the enabled coal-generated electricity? Would this even be realistic in states like Indiana, Ohio, Missouri, and West Virginia, which obtain almost all of their electricity from coal, and would benefit greatly from the newly enabled expansion of existing coal generation? These states have already suffered severe job losses, and significantly increased electricity rates to satisfy an RES would make matters worse.</p>
<p>However, if certain large, coal-dependent states are exempt from paying for the RES costs, then electricity costs in other states would have to increase all the more. Federal RE subsidies could only disguise this fact for so long.</p>
<p>Another question concerns the potential impact of the new transmission on prospects for new coal plants, since even new coal plants with enhanced environmental controls could produce electricity more cheaply than RE. The expanded transmission could enable these new coal plants to achieve capacity factors in the range of 80 to 85 percent, compared to the current average of about 72 to 75 percent. EIA projects that coal costs to electric generators will become increasingly cheaper than the alternatives through 2030, and the cost advantages of new coal plants over the RE plants would thus be substantial.</p>
<p>Yet another question that arises concerns the relationship between RE plants and the required backup plants—most of them likely to be natural gas fired. Once the backup plants and the expanded transmission lines are in place, there will be enormous economic pressure to maximize the less-expensive electricity generation from the backup plants and minimize generation from the RE plants. For, when actual costs are considered, RE also can’t compete with natural gas in the generation of electricity. Mandates could force usage of the much more expensive renewable electricity, but how long ratepayers would be willing to pay for this is questionable.</p>
<p>The bottom line is that the new transmission required by an RES could enable a large new tranche of inexpensive electricity generation from existing coal plants at about 5 cents per kWh. Levelized costs of electricity from renewable power plants are between 15 and 75 cents per kWh. So, once the transmission is in place, unless RE is mandated by law, there will be strong incentives to use RE much less than anticipated.</p>
<p>RE may be necessary to get the additional transmission built. However, once the transmission is in place, the RE plants won’t be able to compete economically and might give a new definition to the term “stranded assets.” At best, they might be used as fuel savers, but the costs of the fuel saved would be very high.</p>
<p>In sum, a mandated RES and the vast expansion of transmission lines required to achieve it could result in a large expansion in the generation of inexpensive electricity. However, this expansion might not be from RE as the proponents of green transmission lines contend. Rather, the expanded, low-cost electricity generation would result from the increased capacity utilization of existing coal plants enabled by the building of the new transmission—and perhaps by new coal plants facilitated by the additional transmission. These plants will be able to generate electricity at prices that are significantly cheaper than those of renewable energy facilities. Once this occurs, electricity consumers will strive to obtain access to this low-cost electricity at the expense of the renewable electricity. How this inexpensive electricity and the costs of an RES are distributed among consumers, ratepayers, and taxpayers will be the subject of intense legislative and regulatory debate.</p>
<p> </p>
<h4>Endnotes:</h4>
<p>1. Christopher Blansett, <i>The Proposed Renewable Electricity Standard and its Impact on the Growth Rate of the Renewable Energy Sector</i>, J.P. Morgan Securities, Inc., Sept. 1, 2009.</p>
<p>2. The only currently practical technology is existing geothermal steam, which is available in very few locations, most already being utilized. Hot-dry rock and other technologies aren’t yet practical or economic.</p>
<p>3. North American Electric Reliability Corp., <i>2001 Long-Term Reliability Assessment: 2007-2016</i>, October 2010.</p>
<p>4. WAPA found that, due to this backup requirement, the environmental impacts of renewable energy projects approach those of the required backup facilities. See <i>Life Cycle Impact Assessment of Renewable Electrical Generation Technologies Compared to the WECC Baseline</i>, prepared by Scientific Certification Systems Inc., for the Western Area Power Administration and Tri-State Generation and Transmission Association, March 2009.</p>
<p>5. “U.S. Electric Reliability: Capacity and Transmission Requirements and Costs,” Management Information Services Inc., September 2008.</p>
<p>6. For example, ITC Holdings has received FERC approval for a 765-KV transmission line to carry wind energy from Iowa and other Midwestern states from the Upper Midwest into Illinois. The approved cost for this one transmission line alone could be as high as $12 billion; see Dan Piller, “Rehearing Requested on Wind Transmission Ruling,” <i>Des Moines Register</i>, Aug. 22, 2011. Transmission lines from the northern Great Plains and the Southwest to the major load centers on the East Cost would be much longer than this line.</p>
<p>7. See, for example, Rebecca Smith, “New Grid for Renewable Energy Could Be Costly,” <i>Wall Street Journal</i>, Feb. 9, 2009.</p>
<p>8. H.R. 2211, <i>National Clean Energy Superhighways Act</i> of 2009, introduced by Rep. Jay Inslee (D-Wash.) on April 30, 2009; <i>Clean Renewable Energy and Economic Development Act</i>, introduced by Sen. Harry Reid in the 111th Congress.</p>
<p>9. See the discussion in S. F. Greenwald and J.P. Gray, “Transmission Superhighway or Interconnected Patchwork?” <i>Power</i>, April 2009.</p>
<p>10. S. F. Greenwald and J. P. Gray, “Can FERC Deliver Transmission?” <i>Power</i>, November 2007.</p>
<p>11. <i>Piedmont Environmental Council v. FERC</i>; see S. F. Greenwald and J. P. Gray, “Transmission Superhighway or Interconnected Patchwork?” op. cit.</p>
<p>12. Part of current capacity underutilization is associated with the recent economic recession which, officially, has ended; see. Sara Murray and Ann Zimmerman, “Bernanke: Recession ‘Likely Over,’” <i>Wall Street Journal</i>, Sept. 16, 2009.</p>
<p>13. Other estimates of wind capacity factors are in the range of 25 to 30 percent, and they could be even lower. For example, Boccard notes, “For two decades, the capacity factor of wind power measuring the mean energy delivered by wind turbines has been assumed at 35 percent of the nameplate capacity. Yet, the mean realized value for Europe over the last five years is closer to 21 percent thus making levelized cost 66 percent higher than previously thought.” Nicolas Boccard, “Capacity Factor of Wind Power: Realized Values vs. Estimates,” October 2008. The actual capacity factors for wind in Germany ranged between 14 and 21 percent over the period 2000 through 2007; see <i>Windenergy Report Germany 2008</i>, ISET, Univ. Kassel, Germany, 2008.</p>
<p>14. During the California heat wave in July 2006, which resulted in significant increases in electricity demand, actual wind generation was at only about 5 percent of available capacity. Thus, in this case, the capacity factor for wind was closer to 5 percent than 34 percent.</p>
<p>15. U.S. Energy Information Administration, <i>Annual Energy Outlook 2009</i>, Washington, D.C., March 2009.</p>
<p>16. M. Frondel, N. Ritter &amp; C. Vance, <i>Economic Impacts From The Promotion Of Renewable Energies: The German Experience;</i> Rheinisch-Westfälisches Inst. f. Wissenschaftsforschung, October 2009.</p>
<p>17. James Schlesinger and Robert Hirsch, “Getting Real on Wind and Solar,” <i>Washington Post</i>, April 24, 2009.</p>
<p>18. Charles Redell, “NW Utilities Get Wind of Integration Charge,” Reuters, August 12, 2009.</p>
<p>19. For example, see the <i>Clean Renewable Energy and Economic Development Act,</i> op. cit.</p>
<p>20. “Green Transmission and the Reid Bill,” Management Information Services, Inc., March 2009.</p>
<p>21. This is a complex issue, since some older coal plants might not be able to operate at full capacity because of mechanical and environmental limitations. Further, upgrading older coal plants could run into regulatory restrictions via new source performance standards; see “What You Should Know About Electric Companies and New Source Review,” Edison Electric Institute, July 2002.</p>
<p>22. This would be analogous to what happened in the U.S. nuclear power industry over the past two decades, where nuclear capacity factors increased from less than 80 percent to the current 90 percent or more.</p>
<p>23. U.S. Energy Information Administration, <i>Annual Energy Outlook 2011</i>, April 2011.</p>
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<a href="/tags/annual-energy-outlook">Annual Energy Outlook</a><span class="pur_comma">, </span><a href="/tags/bpa-0">BPA</a><span class="pur_comma">, </span><a href="/tags/congress">Congress</a><span class="pur_comma">, </span><a href="/tags/cost">Cost</a><span class="pur_comma">, </span><a href="/tags/department-energy">Department of Energy</a><span class="pur_comma">, </span><a href="/tags/edison-electric-institute">Edison Electric Institute</a><span class="pur_comma">, </span><a href="/tags/edison-international">Edison International</a><span class="pur_comma">, </span><a href="/tags/eia-0">EIA</a><span class="pur_comma">, </span><a href="/tags/energy-information-administration-0">Energy Information Administration</a><span class="pur_comma">, </span><a href="/tags/energy-policy-act">Energy Policy Act</a><span class="pur_comma">, </span><a href="/tags/epa">EPA</a><span class="pur_comma">, </span><a href="/tags/epact">EPAct</a><span class="pur_comma">, </span><a href="/tags/ferc">FERC</a><span class="pur_comma">, </span><a href="/tags/geothermal">Geothermal</a><span class="pur_comma">, </span><a href="/tags/harry-reid">Harry Reid</a><span class="pur_comma">, </span><a href="/tags/integration">Integration</a><span class="pur_comma">, </span><a href="/tags/it">IT</a><span class="pur_comma">, </span><a href="/tags/itc">ITC</a><span class="pur_comma">, </span><a href="/tags/itc-holdings">ITC Holdings</a><span class="pur_comma">, </span><a href="/tags/jp-morgan">J.P. Morgan</a><span class="pur_comma">, </span><a href="/tags/jp-morgan-0">JP Morgan</a><span class="pur_comma">, </span><a href="/tags/lcoe">LCOE</a><span class="pur_comma">, </span><a href="/tags/management-information-services-inc">Management Information Services Inc.</a><span class="pur_comma">, </span><a href="/tags/mandates">Mandates</a><span class="pur_comma">, </span><a href="/tags/natural-gas">Natural gas</a><span class="pur_comma">, </span><a href="/tags/nerc">NERC</a><span class="pur_comma">, </span><a href="/tags/north-american-electric-reliability-corp-0">North American Electric Reliability Corp.</a><span class="pur_comma">, </span><a href="/tags/pacific-northwest">Pacific Northwest</a><span class="pur_comma">, </span><a href="/tags/permitting">Permitting</a><span class="pur_comma">, </span><a href="/tags/pv">PV</a><span class="pur_comma">, </span><a href="/tags/reliability">Reliability</a><span class="pur_comma">, </span><a href="/tags/renewable">Renewable</a><span class="pur_comma">, </span><a href="/tags/renewable-energy">Renewable Energy</a><span class="pur_comma">, </span><a href="/tags/res">RES</a><span class="pur_comma">, </span><a href="/tags/solar">Solar</a><span class="pur_comma">, </span><a href="/tags/spinning-reserve">spinning reserve</a><span class="pur_comma">, </span><a href="/tags/storage">storage</a><span class="pur_comma">, </span><a href="/tags/superhighway">Superhighway</a><span class="pur_comma">, </span><a href="/tags/transmission">Transmission</a><span class="pur_comma">, </span><a href="/tags/us-energy-information-administration">U.S. Energy Information Administration</a><span class="pur_comma">, </span><a href="/tags/wecc">WECC</a><span class="pur_comma">, </span><a href="/tags/wind">Wind</a> </div>
</div>
Wed, 01 Feb 2012 05:00:00 +0000puradmin13424 at http://www.fortnightly.comPeople (August 2011)http://www.fortnightly.com/fortnightly/2011/08/people-august-2011
<div class="field field-name-field-import-category field-type-text field-label-inline clearfix"><div class="field-label">Category:&nbsp;</div><div class="field-items"><div class="field-item even">People</div></div></div><div class="field field-name-field-import-volume field-type-node-reference field-label-inline clearfix"><div class="field-label">Magazine Volume:&nbsp;</div><div class="field-items"><div class="field-item even">Fortnightly Magazine - August 2011</div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even"><p><span class="boldred">New Opportunities:</span><b> Dynegy</b> appointed <b>Robert C. Flexon</b>, currently a Dynegy independent director, as president and CEO. Flexon will replace <b>E. Hunter Harrison</b>, who has served as interim president and CEO since April 2011. Harrison will be resuming his role as an independent director and will serve as non-executive chairman of Dynegy’s board of directors.</p>
<p><b>Dynegy</b> also named three former NRG executives to positions in corporate management. <b>Carolyn J. Burke</b> became executive vice president and chief administrative officer; she was global controller for J.P. Morgan’s global commodities business, and an executive with NRG before that. <b>Kevin T. Howell</b>, who retired last year as president of NRG Texas and president of Reliant Energy, became Dynegy’s executive vice president and chief operating officer. <b>Clint C. Freeland</b>, formerly an NRG senior vice president and CFO, became Dynegy’s executive vice president and CFO.</p>
<p><b>Sempra Energy</b> named <b>Debra L. Reed</b> as CEO of the company and a new member of the company’s board. Reed has been executive v.p. of Sempra Energy since April 2010. Previously, she was president and CEO of San Diego Gas &amp; Electric and Southern California Gas.</p>
<p><b>Southern Company</b> elected <b>Stephen Kuczynski</b> chairman, president and CEO of the company’s Southern Nuclear subsidiary. Kuczynski comes to Southern from Exelon where he was senior v.p., engineering and technical services, for Exelon Nuclear.</p>
<p>The <b>California Independent System Operator</b> named <b>Steve Berberich</b> as the organization’s new president and CEO. He succeeds Yakout Mansour who etired. Berberich has served as the ISO’s COO since 2010.</p>
<p><b>Constellation Energy Nuclear Group</b> (CENG) made leadership changes at its R.E. Ginna Nuclear Power Plant located in Ontario, N.Y., including <b>Joe Pacher</b> as site v.p. and <b>Sonny Dean</b> as plant general manager (PGM).</p>
<p><b>FirstEnergy Nuclear Operating Co.</b> (FENOC) named <b>Eric A. Larson</b> v.p., nuclear support. Larson joins FENOC from Constellation Energy, where he was plant general manager at the Calvert Cliffs and R.E. Ginna nuclear power plants.</p>
<p><b>American Electric Power</b> named <b>Lisa Barton</b> executive v.p., AEP transmission, effective August 1. Barton currently is AEP’s senior v.p., transmission strategy and business development.</p>
<p><b>Charles “Chuck” O. Hinson</b>, TECO Energy’s v.p. of federal &amp; state governmental affairs, was named v.p. of state and community relations for <b>Tampa Electric and Peoples Gas</b>.</p>
<p><b>Pace Global Energy Services</b> named <b>Tim Heinle</b> as v.p. in the renewable energy development group. Heinle has more than 16 years of experience in the energy sector and previously worked at Duke Energy, Magellan Resources Group, and Community Resources.</p>
<p><b>America’s Natural Gas Alliance</b> (ANGA) named Amy Farrell as v.p. of regulatory affairs. Farrell joins ANGA from Exxon Mobil Corp., where she advised senior executives on a range of policy issues.</p>
<p><b>Mid Atlantic Conference of Regulatory Utilities Commissioners</b> (MACRUC) elected <b>Betty Ann Kane</b> as president. Currently Kane serves as chairman of the Public Service Commission of the District of Columbia.</p>
<p><b>Jay Morrison</b> was promoted to v.p. of regulatory issues for <b>National Rural Electric Cooperative Association</b> (NRECA). Most recently, Morrison served as NRECA’s senior regulatory counsel.</p>
<p> </p>
<p><span class="boldred">Boards of Directors: </span><b>Greeneville Light &amp; Power</b> General Manager <b>William Carroll</b> assumed the chairmanship of the American Public Power Association (APPA). He began his service at Greeneville (Tenn.) Light &amp; Power as general manager in 1990.</p>
<p><b>Energy Systems Network</b> (ESN) elected four new members to its board of directors: Midwest ISO President and CEO <b>John Bear</b>; ITOCHU Chairman <b>Eizo Kobayashi</b>; Toshiba President and CEO <b>Norio Sasaki</b>; and Bright Automotive Chairman and CEO <b>Reuben Munger</b>. Based in Indianapolis, ESN develops and coordinates energy technology commercialization projects and joint ventures among network members.</p>
<p> </p>
<p><i>We welcome submissions to People, especially those accompanied by a high-resolution color photograph. E-mail to: <a href="mailto:people@pur.com">people@pur.com</a>.</i></p>
</div></div></div><div class="field field-name-field-article-category field-type-taxonomy-term-reference field-label-above clearfix"><h3 class="field-label">Category (Actual): </h3><ul class="links"><li class="taxonomy-term-reference-0"><a href="/article-categories/people">People</a></li></ul></div><div class="field field-name-field-members-only field-type-list-boolean field-label-above"><div class="field-label">Viewable to All?:&nbsp;</div><div class="field-items"><div class="field-item even"></div></div></div><div class="field field-name-field-article-featured field-type-list-boolean field-label-above"><div class="field-label">Is Featured?:&nbsp;</div><div class="field-items"><div class="field-item even"></div></div></div><div class="field field-name-field-department field-type-taxonomy-term-reference field-label-above clearfix"><h3 class="field-label">Department: </h3><ul class="links"><li class="taxonomy-term-reference-0"><a href="/department/people">People</a></li></ul></div><div class="field field-name-field-image-picture field-type-image field-label-above"><div class="field-label">Image Picture:&nbsp;</div><div class="field-items"><div class="field-item even"><img src="http://www.fortnightly.com/sites/default/files/article_images/1108/images/1108cvr.jpg" width="903" height="1200" alt="" /></div></div></div><div class="field field-name-field-fortnightly-40 field-type-list-boolean field-label-above"><div class="field-label">Is Fortnightly 40?:&nbsp;</div><div class="field-items"><div class="field-item even"></div></div></div><div class="field field-name-field-law-lawyers field-type-list-boolean field-label-above"><div class="field-label">Is Law &amp; Lawyers:&nbsp;</div><div class="field-items"><div class="field-item even"></div></div></div><div class="field field-name-field-tags field-type-taxonomy-term-reference field-label-above clearfix">
<div class="field-label">Tags:&nbsp;</div>
<div class="field-items">
<a href="/tags/aep">AEP</a><span class="pur_comma">, </span><a href="/tags/american-electric-power">American Electric Power</a><span class="pur_comma">, </span><a href="/tags/american-public-power-association">American Public Power Association</a><span class="pur_comma">, </span><a href="/tags/amy-farrell">Amy Farrell</a><span class="pur_comma">, </span><a href="/tags/anga">ANGA</a><span class="pur_comma">, </span><a href="/tags/appa">APPA</a><span class="pur_comma">, </span><a href="/tags/betty-ann-kane">Betty Ann Kane</a><span class="pur_comma">, </span><a href="/tags/bright-automotive">Bright Automotive</a><span class="pur_comma">, </span><a href="/tags/california-independent-system-operator">California Independent System Operator</a><span class="pur_comma">, </span><a href="/tags/calvert-cliffs">Calvert Cliffs</a><span class="pur_comma">, </span><a href="/tags/carolyn-j-burke">Carolyn J. Burke</a><span class="pur_comma">, </span><a href="/tags/ceng">CENG</a><span class="pur_comma">, </span><a href="/tags/clint-c-freeland">Clint C. Freeland</a><span class="pur_comma">, </span><a href="/tags/commission">Commission</a><span class="pur_comma">, </span><a href="/tags/constellation">Constellation</a><span class="pur_comma">, </span><a href="/tags/constellation-energy">Constellation Energy</a><span class="pur_comma">, </span><a href="/tags/constellation-energy-nuclear-group">Constellation Energy Nuclear Group</a><span class="pur_comma">, </span><a href="/tags/debra-l-reed">Debra L. Reed</a><span class="pur_comma">, </span><a href="/tags/duke-energy">Duke Energy</a><span class="pur_comma">, </span><a href="/tags/dynegy">Dynegy</a><span class="pur_comma">, </span><a href="/tags/e-hunter-harrison">E. Hunter Harrison</a><span class="pur_comma">, </span><a href="/tags/eizo-kobayashi">Eizo Kobayashi</a><span class="pur_comma">, </span><a href="/tags/energy-systems-network">Energy Systems Network</a><span class="pur_comma">, </span><a href="/tags/eric-larson">Eric A. Larson</a><span class="pur_comma">, </span><a href="/tags/esn">ESN</a><span class="pur_comma">, </span><a href="/tags/exelon">Exelon</a><span class="pur_comma">, </span><a href="/tags/fenoc">FENOC</a><span class="pur_comma">, </span><a href="/tags/firstenergy">FirstEnergy</a><span class="pur_comma">, </span><a href="/tags/iso">ISO</a><span class="pur_comma">, </span><a href="/tags/it">IT</a><span class="pur_comma">, </span><a href="/tags/itochu">ITOCHU</a><span class="pur_comma">, </span><a href="/tags/jp-morgan">J.P. Morgan</a><span class="pur_comma">, </span><a href="/tags/jay-morrison">Jay Morrison</a><span class="pur_comma">, </span><a href="/tags/joe-pacher">Joe Pacher</a><span class="pur_comma">, </span><a href="/tags/john-bear">John Bear</a><span class="pur_comma">, </span><a href="/tags/kevin-t-howell">Kevin T. Howell</a><span class="pur_comma">, </span><a href="/tags/lisa-barton">Lisa Barton</a><span class="pur_comma">, </span><a href="/tags/macruc">MACRUC</a><span class="pur_comma">, </span><a href="/tags/mid-atlantic-conference-regulatory-utilities-commissioners">Mid Atlantic Conference of Regulatory Utilities Commissioners</a><span class="pur_comma">, </span><a href="/tags/midwest-iso">Midwest ISO</a><span class="pur_comma">, </span><a href="/tags/network">Network</a><span class="pur_comma">, </span><a href="/tags/nga">NGA</a><span class="pur_comma">, </span><a href="/tags/norio-sasaki">Norio Sasaki</a><span class="pur_comma">, </span><a href="/tags/nreca">NRECA</a><span class="pur_comma">, </span><a href="/tags/nrg">NRG</a><span class="pur_comma">, </span><a href="/tags/nuclear">Nuclear</a><span class="pur_comma">, </span><a href="/tags/pace-global-energy-services">Pace Global Energy Services</a><span class="pur_comma">, </span><a href="/tags/peoples-gas">Peoples Gas</a><span class="pur_comma">, </span><a href="/tags/ppa">PPA</a><span class="pur_comma">, </span><a href="/tags/public-service-commission-district-columbia">Public Service Commission of the District of Columbia</a><span class="pur_comma">, </span><a href="/tags/rec">REC</a><span class="pur_comma">, </span><a href="/tags/reliant-energy">Reliant Energy</a><span class="pur_comma">, </span><a href="/tags/reuben-munger">Reuben Munger</a><span class="pur_comma">, </span><a href="/tags/robert-c-flexon">Robert C. Flexon</a><span class="pur_comma">, </span><a href="/tags/sempra">Sempra</a><span class="pur_comma">, </span><a href="/tags/sempra-energy">Sempra Energy</a><span class="pur_comma">, </span><a href="/tags/sonny-dean">Sonny Dean</a><span class="pur_comma">, </span><a href="/tags/southern-company">Southern Company</a><span class="pur_comma">, </span><a href="/tags/southern-nuclear">Southern Nuclear</a><span class="pur_comma">, </span><a href="/tags/stephen-kuczynski">Stephen Kuczynski</a><span class="pur_comma">, </span><a href="/tags/steve-berberich">Steve Berberich</a><span class="pur_comma">, </span><a href="/tags/tampa-electric">Tampa Electric</a><span class="pur_comma">, </span><a href="/tags/teco-energy">TECO Energy</a><span class="pur_comma">, </span><a href="/tags/tim-heinle">Tim Heinle</a><span class="pur_comma">, </span><a href="/tags/toshiba">Toshiba</a><span class="pur_comma">, </span><a href="/tags/william-carroll">William Carroll</a><span class="pur_comma">, </span><a href="/tags/yakout-man">Yakout Man</a> </div>
</div>
Mon, 01 Aug 2011 04:00:00 +0000puradmin13523 at http://www.fortnightly.comPeople (September 2009)http://www.fortnightly.com/fortnightly/2009/09/people-september-2009
<div class="field field-name-field-import-category field-type-text field-label-inline clearfix"><div class="field-label">Category:&nbsp;</div><div class="field-items"><div class="field-item even">People</div></div></div><div class="field field-name-field-import-volume field-type-node-reference field-label-inline clearfix"><div class="field-label">Magazine Volume:&nbsp;</div><div class="field-items"><div class="field-item even">Fortnightly Magazine - September 2009</div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even"><p><span class="boldred">New Opportunities: </span><b>NiSource</b> named <b>M. Carol Fox</b> as president of Columbia Gas of Pennsylvania (CPA) and Columbia Gas of Maryland (CMD). Fox was senior vice president of Customer Engagement for NiSource. <b>Terry Murphy</b>, previous president of CPA/CMD, will transition into retirement early next year.</p>
<p><b>TECO Energy</b> promoted <b>Gordon L</b>. <b>Gillette</b> to president for both Tampa Electric and Peoples Gas, from his position as executive v.p.-finance and CFO, and president of TECO Guatemala. <b>Phil L. Barringer</b> was named president of TECO Guatemala and v.p., human resources from v.p. and controller, operations. <b>Sandra W. Callahan </b>is named v.p., finance and accounting and CFO from v.p., treasury and risk management. <b>Charles A. Attal III</b> continues as senior v.p., general counsel and chief legal officer, but adds responsibility for state and federal governmental affairs. <b>Deirdre A. Brown</b> is named v.p., business strategy and compliance and chief ethics and compliance officer from v.p., customer service and regulatory affairs.</p>
<p><b>American Transmission</b> elected <b>Michael Hofbauer</b> v.p., CFO and treasurer from interim CFO.</p>
<p><b>Consolidated Edison</b> promoted <b>Robert Muccilo</b> to v.p. and controller, succeeding the retiring <b>Edward J. Rasmussen</b>. Muccilo joined ConEd in 1978.</p>
<p><b>PG&amp;E Corp</b>. promoted <b>Christopher P. Johns</b> to president of Pacific Gas and Electric from senior v.p. and CFO. <b>Kent Harvey</b> will succeed Johns as CFO, from v.p. and chief risk and audit officer. <b>Nicholas Bijur</b>, senior director, has assumed Johns’ responsibilities as treasurer. Bijur was assistant treasurer.</p>
<p><b>Falcon Gas Storage</b> appointed <b>Antoine LaFargue</b> as CFO. He was with Arcapita and served two years on Falcon’s board.</p>
<p><b>Constellation Energy</b> appointed <b>Elizabeth (Betsy) E. Cadwallader</b> as v.p., credit risk management. She was managing director at J.P. Morgan.</p>
<p><b>Duke Energy</b> named <b>Andrea Bertone</b> the new president of Duke Energy International (DEI) from DEI general counsel, replacing <b>Richard McGee</b>, who left the company. <b>Keith Trent</b>, group executive and chief strategy, policy and regulatory officer, was named group executive and president of Duke’s commercial businesses. <b>Jim Turner</b>, group executive, president and COO for U.S. franchised electric and gas, assumed expanded responsibilities. <b>Dhiaa Jamil</b>, group executive and chief nuclear officer (CNO), was named group executive and chief generation officer, while retaining the title of CNO.</p>
<p><b>Arthur D. Little</b> announced <b>Joseph L. Coote</b> is the firm’s new global energy &amp; chemicals practice leader.</p>
<p><b>UGI Corp</b>. announced that <b>John Walsh</b>, president and COO of UGI and vice chairman of UGI Utilities, is named president and CEO of UGI Utilities.</p>
<p><b>Oglethorpe Power Corp</b>. named <b>Charles W. (Chuck) Whitney</b> as senior v.p. and general counsel.</p>
<p><b>Concept Capitol</b> announced that <b>William F. Hederman</b> joined as senior energy policy analyst. He was founding director of FERC’s Office of Market Oversight and Investigations (now Office of Enforcement).</p>
<p><b>Tantalus Systems Corp</b>. selected <b>Eric Murray</b> as president and CEO. He has been with the company since 2003.</p>
<p> </p>
<p><span class="boldred">Boards of Directors: </span><b>CMS Energy</b> elected <b>Stephen E. Ewing t</b>o its board and the board of its Consumers Energy subsidiary. He was vice chairman, DTE Energy.</p>
<p><b>Cleco</b> elected <b>Peter Scott </b>to its board. He was executive v.p. and CFO of Progress Energy.</p>
<p><b>SCANA</b> elected <b>Joshua W. Martin III</b> to its board. He is a partner in the law firm of Potter Anderson &amp; Corroon.</p>
<p> </p>
<p><i>We welcome submissions to People, especially those accompanied by a high-resolution color photograph. E-mail to: <a href="mailto:people@pur.com">people@pur.com</a>.</i></p>
</div></div></div><div class="field field-name-field-article-category field-type-taxonomy-term-reference field-label-above clearfix"><h3 class="field-label">Category (Actual): </h3><ul class="links"><li class="taxonomy-term-reference-0"><a href="/article-categories/people">People</a></li></ul></div><div class="field field-name-field-members-only field-type-list-boolean field-label-above"><div class="field-label">Viewable to All?:&nbsp;</div><div class="field-items"><div class="field-item even"></div></div></div><div class="field field-name-field-article-featured field-type-list-boolean field-label-above"><div class="field-label">Is Featured?:&nbsp;</div><div class="field-items"><div class="field-item even"></div></div></div><div class="field field-name-field-department field-type-taxonomy-term-reference field-label-above clearfix"><h3 class="field-label">Department: </h3><ul class="links"><li class="taxonomy-term-reference-0"><a href="/department/people">People</a></li></ul></div><div class="field field-name-field-image-picture field-type-image field-label-above"><div class="field-label">Image Picture:&nbsp;</div><div class="field-items"><div class="field-item even"><img src="http://www.fortnightly.com/sites/default/files/0909-cvr_0.jpg" width="1121" height="1500" alt="" /></div></div></div><div class="field field-name-field-fortnightly-40 field-type-list-boolean field-label-above"><div class="field-label">Is Fortnightly 40?:&nbsp;</div><div class="field-items"><div class="field-item even"></div></div></div><div class="field field-name-field-law-lawyers field-type-list-boolean field-label-above"><div class="field-label">Is Law &amp; Lawyers:&nbsp;</div><div class="field-items"><div class="field-item even"></div></div></div><div class="field field-name-field-tags field-type-taxonomy-term-reference field-label-above clearfix">
<div class="field-label">Tags:&nbsp;</div>
<div class="field-items">
<a href="/tags/american-transmission">American Transmission</a><span class="pur_comma">, </span><a href="/tags/cleco">Cleco</a><span class="pur_comma">, </span><a href="/tags/constellat">Constellat</a><span class="pur_comma">, </span><a href="/tags/constellation">Constellation</a><span class="pur_comma">, </span><a href="/tags/constellation-energy">Constellation Energy</a><span class="pur_comma">, </span><a href="/tags/consumers-energy">Consumers Energy</a><span class="pur_comma">, </span><a href="/tags/cpa">CPA</a><span class="pur_comma">, </span><a href="/tags/dte-energy">DTE Energy</a><span class="pur_comma">, </span><a href="/tags/duke-energy">Duke Energy</a><span class="pur_comma">, </span><a href="/tags/ferc">FERC</a><span class="pur_comma">, </span><a href="/tags/jp-morgan">J.P. Morgan</a><span class="pur_comma">, </span><a href="/tags/nisource">NiSource</a><span class="pur_comma">, </span><a href="/tags/pacific-gas-and-electric">Pacific Gas and Electric</a><span class="pur_comma">, </span><a href="/tags/peoples-gas">Peoples Gas</a><span class="pur_comma">, </span><a href="/tags/progress">Progress</a><span class="pur_comma">, </span><a href="/tags/progress-energy">Progress Energy</a><span class="pur_comma">, </span><a href="/tags/scana">SCANA</a><span class="pur_comma">, </span><a href="/tags/tampa-electric">Tampa Electric</a><span class="pur_comma">, </span><a href="/tags/tantalus">Tantalus</a><span class="pur_comma">, </span><a href="/tags/teco-energy">TECO Energy</a><span class="pur_comma">, </span><a href="/tags/transmission">Transmission</a> </div>
</div>
Tue, 01 Sep 2009 04:00:00 +0000puradmin14148 at http://www.fortnightly.comPeoplehttp://www.fortnightly.com/fortnightly/2008/03/people
<div class="field field-name-field-import-category field-type-text field-label-inline clearfix"><div class="field-label">Category:&nbsp;</div><div class="field-items"><div class="field-item even">People</div></div></div><div class="field field-name-field-import-volume field-type-node-reference field-label-inline clearfix"><div class="field-label">Magazine Volume:&nbsp;</div><div class="field-items"><div class="field-item even">Fortnightly Magazine - March 2008</div></div></div><div class="field field-name-field-import-image field-type-image field-label-above"><div class="field-label">Image:&nbsp;</div><div class="field-items"><div class="field-item even"><img src="http://www.fortnightly.com/sites/default/files/article_images/0803/images/0803-cvr.jpg" width="1121" height="1500" alt="" /></div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even"><p><b>Montana-Dakota Utilities: David L. Goodin</b> became president of Montana-Dakota Utilities and Great Plains Natural Gas on March 1. Goodin will continue as president of Cascade Natural Gas. In his new positions, he succeeds <b>Bruce T. Imsdahl</b>, president and chief executive officer of Montana-Dakota Utilities and Great Plains Natural Gas, as well as CEO of Cascade Natural Gas, who will retire on June 5 after 38 years with the company.</p>
<p><b>ONEOK</b> and ONEOK Partners, LP announced three new officer appointments. <b>Caron A. Lawhorn</b>, senior vice president and chief accounting officer of ONEOK, assumed added responsibilities as chief accounting officer for ONEOK Partners. <b>Stephen B. Allen</b> was promoted to vice president and associate general counsel at ONEOK Partners, and <b>Joseph L. McCormick</b> was promoted to vice president and associate general counsel for ONEOK distribution companies’ legal matters.</p>
<p><b>Duke Energy</b> named B<b>ruce H. Hamilton</b> as vice president of McGuire Nuclear Station, from his position as vice president of Oconee Nuclear Station. He succeeds <b>Gary Peterson</b>, who was named vice president of nuclear fleet performance. Also, Duke appointed <b>Richard W. Haviland</b> as senior vice president, construction and major projects. Previously Haviland served as president and chief executive officer of the project execution group for Air Liquide.</p>
<p><strong>PJM</strong> named <strong>W. Terry Boston</strong> its new president and CEO. He leaves TVA, where he was executive vice president of power systems operations.</p>
<p><b>PG&amp;E</b> announced the selection of <b>Jack Keenan</b> as chief operating officer. He assumes the role previously held by William T. Morrow, who was the utility’s president and CEO since July 2007. Keenan previously was senior vice president of generation and chief nuclear officer. <b>John Conway</b>, site vice president of PG&amp;E’s Diablo Canyon nuclear plant, in the interim will assume the role as chief nuclear officer.</p>
<p><b>Energy Future Holdings</b> (EFH—previously TXU) announced that <b>John F. Young</b> will become the first CEO of the Dallas-based energy holding company. Young leaves <b>Exelon</b>, where he served as executive vice president of finance and markets.</p>
<p><b>Peabody Energy</b> named <b>Richard A. Navarre</b> president and chief commercial officer. Navarre had been chief financial officer since 1999.</p>
<p>Constellation Energy appointed Brenda Boultwood its senior vice president and chief risk officer. Previously she was global head of strategy at Alternative Investment Services for J.P. Morgan Chase &amp; Co.</p>
<p><b>Public Service Enterprise Group</b> (PSEG) announced seven executive moves, including election of three corporate vice presidents. <b>Eileen Moran</b>, president of PSEG Resources, will take on added duties as senior vice president for strategic initiatives, PSEG Services. <b>Kevin Quinn</b>, previously president, PSEG Energy Resources &amp; Trade, will become senior vice president, corporate planning, PSEG. <b>Al Matos</b>, previously vice president distribution operations, PSEG Global, will become vice president for renewables and energy solutions at Public Service Electric and Gas (PSE&amp;G). <b>Michelle Hallerdin</b>, previously vice president of workforce planning and talent management at PSEG Services, will become vice president, strategic planning and finance, PSEG Global. PSEG also announced the following new officers: <b>Richard Machon</b> was named senior vice president, fossil operations at PSEG Power; <b>David Daly</b>, previously director in PSE&amp;G’s customer operations group, became vice president energy acquisitions and technology at PSE&amp;G; and <b>Cora Brina</b>, previously a director in PSEG’s human resources department was promoted to vice president, HR client services.</p>
<p><b>Ventyx</b> promoted <b>Vince Burkett</b> to president and chief executive officer, from chief operating officer. Previous CEO Greg Dukat stepped down.</p>
<p><b>First Reserve Corp.</b>, the largest energy focused private equity firm, announced three promotions, with <b>Rahman D’Argenio</b>, <b>Jeff Quake</b> and <b>Josh Weiner</b> named as directors.</p>
<p><span class="boldred">Associations:</span><b>Northeast Gas Association</b>: <b>Stephen Bryant</b>, president of Bay State Gas Co. and Northern Utilities, was elected chairman of the Northeast Gas Association.</p>
<p><b>Zigbee Alliance</b>: <b>Adrian Tuck</b>, CEO at Tendril, was named vice chairman of the Zigbee Alliance.</p>
<p><span class="boldred">Board Elections:</span><b>AEP</b>: <b>Michael G. Morris</b>, chairman, president and CEO of American Electric Power, was elected to the Batelle board of directors.</p>
<p><b>SCANA</b> elected two new board members: <b>James M. Micali</b>, chairman and president of Michelin North America; and <b>James W. Roquemore</b>, CEO and chairman of Patten Seed Co.</p>
<p>The <b>New York Independent System Operator</b> elected to its board of directors <b>James V. Mahoney</b>, president and CEO of Energy Market Solutions, Inc.</p>
<p><b>Pinnacle West</b> Capital Corp. appointed Gannett Newspaper Division President <b>Susan Clark-Johnson</b> to its board effective Feb. 1.</p>
<p> </p>
<p><span class="boldred">Retired: </span><b>Duke Energy</b>: <b>Henry B. Barron</b>, group executive and chief nuclear officer, is retiring effective March 31, after serving as Duke’s chief nuclear officer since 2004. <b>Dhiaa M. Jamil</b>, currently Duke Energy’s senior vice president of nuclear support, assumes the group executive and CNO role on February 17.</p>
<p><b>Williams</b>: <b>Michael Johnson</b>, chief administrative officer at Williams Cos., will retire March 31 and is providing consulting services through year end to assist in the transition.</p>
<p><b>Dominion</b>: <b>Duane C. Radtke</b>, executive vice present of Dominion, retired Dec. 31, 2007.</p>
<p><b>Sargent &amp; Lundy</b>: <b>Thomas J. Murray</b>, executive vice president at Sargent &amp; Lundy LLC, retired at the end of 2007 after over 40 years with the com<span class="boldred">pany. </span></p>
<p> </p>
<p><span class="boldred">Resigned: </span><b>Black Hills</b>: Mark T. Thies, executive vice president and chief financial officer at Black Hills Corp., resigned effective Jan. 18, 2008.</p>
</div></div></div><div class="field field-name-field-article-category field-type-taxonomy-term-reference field-label-above clearfix"><h3 class="field-label">Category (Actual): </h3><ul class="links"><li class="taxonomy-term-reference-0"><a href="/article-categories/people">People</a></li></ul></div><div class="field field-name-field-members-only field-type-list-boolean field-label-above"><div class="field-label">Viewable to All?:&nbsp;</div><div class="field-items"><div class="field-item even"></div></div></div><div class="field field-name-field-article-featured field-type-list-boolean field-label-above"><div class="field-label">Is Featured?:&nbsp;</div><div class="field-items"><div class="field-item even"></div></div></div><div class="field field-name-field-department field-type-taxonomy-term-reference field-label-above clearfix"><h3 class="field-label">Department: </h3><ul class="links"><li class="taxonomy-term-reference-0"><a href="/department/people">People</a></li></ul></div><div class="field field-name-field-fortnightly-40 field-type-list-boolean field-label-above"><div class="field-label">Is Fortnightly 40?:&nbsp;</div><div class="field-items"><div class="field-item even"></div></div></div><div class="field field-name-field-law-lawyers field-type-list-boolean field-label-above"><div class="field-label">Is Law &amp; Lawyers:&nbsp;</div><div class="field-items"><div class="field-item even"></div></div></div><div class="field field-name-field-tags field-type-taxonomy-term-reference field-label-above clearfix">
<div class="field-label">Tags:&nbsp;</div>
<div class="field-items">
<a href="/tags/adrian-tuck">Adrian Tuck</a><span class="pur_comma">, </span><a href="/tags/aep">AEP</a><span class="pur_comma">, </span><a href="/tags/american-electric-power">American Electric Power</a><span class="pur_comma">, </span><a href="/tags/black-hills-corp">Black Hills Corp</a><span class="pur_comma">, </span><a href="/tags/black-hills-corp-0">Black Hills Corp.</a><span class="pur_comma">, </span><a href="/tags/constellat">Constellat</a><span class="pur_comma">, </span><a href="/tags/constellation">Constellation</a><span class="pur_comma">, </span><a href="/tags/constellation-energy">Constellation Energy</a><span class="pur_comma">, </span><a href="/tags/dominion">Dominion</a><span class="pur_comma">, </span><a href="/tags/duke-energy">Duke Energy</a><span class="pur_comma">, </span><a href="/tags/exelon">Exelon</a><span class="pur_comma">, </span><a href="/tags/jp-morgan">J.P. Morgan</a><span class="pur_comma">, </span><a href="/tags/new-york-independent-system-operator">New York Independent System Operator</a><span class="pur_comma">, </span><a href="/tags/nuclear">Nuclear</a><span class="pur_comma">, </span><a href="/tags/peabody-energy">Peabody Energy</a><span class="pur_comma">, </span><a href="/tags/pjm">PJM</a><span class="pur_comma">, </span><a href="/tags/pseg-power">PSEG Power</a><span class="pur_comma">, </span><a href="/tags/public-service-electric-and-gas">Public Service Electric and Gas</a><span class="pur_comma">, </span><a href="/tags/public-service-enterprise-group">Public Service Enterprise Group</a><span class="pur_comma">, </span><a href="/tags/retired">Retired</a><span class="pur_comma">, </span><a href="/tags/scana">SCANA</a><span class="pur_comma">, </span><a href="/tags/tendril">Tendril</a><span class="pur_comma">, </span><a href="/tags/tva">TVA</a><span class="pur_comma">, </span><a href="/tags/williams">Williams</a><span class="pur_comma">, </span><a href="/tags/zigbee">Zigbee</a><span class="pur_comma">, </span><a href="/tags/zigbee-alliance">Zigbee Alliance</a> </div>
</div>
Sat, 01 Mar 2008 05:00:00 +0000puradmin13837 at http://www.fortnightly.comBuilding a Utility Roll-up Machinehttp://www.fortnightly.com/fortnightly/2007/05/building-utility-roll-machine
<div class="field field-name-field-import-deck field-type-text-long field-label-inline clearfix"><div class="field-label">Deck:&nbsp;</div><div class="field-items"><div class="field-item even"><p>How private-equity firms may consolidate the utilities industry.</p>
</div></div></div><div class="field field-name-field-import-byline field-type-text-long field-label-inline clearfix"><div class="field-label">Byline:&nbsp;</div><div class="field-items"><div class="field-item even"><p>Markian Melnyk</p>
</div></div></div><div class="field field-name-field-import-bio field-type-text-long field-label-inline clearfix"><div class="field-label">Author Bio:&nbsp;</div><div class="field-items"><div class="field-item even"><p><b>Markian Melnyk</b> practices utility and regulatory law at LeBoeuf, Lamb, Greene &amp; MacRae LLP. Contact him at <a href="mailto:mmelnyk@llgm.com">mmelnyk@llgm.com</a>.</p>
</div></div></div><div class="field field-name-field-import-volume field-type-node-reference field-label-inline clearfix"><div class="field-label">Magazine Volume:&nbsp;</div><div class="field-items"><div class="field-item even">Fortnightly Magazine - May 2007</div></div></div><div class="field field-name-field-import-image field-type-image field-label-above"><div class="field-label">Image:&nbsp;</div><div class="field-items"><div class="field-item even"><img src="http://www.fortnightly.com/sites/default/files/article_images/0705/images/0705-FEA3-fig1.jpg" width="1549" height="1005" alt="" /></div><div class="field-item odd"><img src="http://www.fortnightly.com/sites/default/files/article_images/0705/images/0705-FEA3-fig2.jpg" width="1552" height="893" alt="" /></div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even"><p>Imagine that you are C. John Wilder, chairman and CEO of TXU Corp., and before you sit several bankers wearing French cuffs. They want to buy your company for cash, with a sweet premium for shareholders. How do you advise your board? Will the bankers be able to close the deal or will they leave TXU tied up for a year or more while regulators, politicians, ratepayer groups, and public-interest advocates take potshots at the deal? What will be your ongoing role in this enterprise? And, if you’re not C. John Wilder but would like to be in his shoes, how would you enhance the curb appeal of your company to attract similar suitors?</p>
<p>With more than 3,000 electric utilities in the United States today, much thought has been given to how this fragmented industry could be consolidated to reduce costs and more efficiently deploy large amounts of capital in new plant. The bankers leading the TXU acquisition consortium, Texas Pacific Group (TPG) and Kohlberg Kravis Roberts (KKR), have had previous failures with utility acquisitions. Their success in acquiring TXU will depend on whether lessons have been learned from those failures. Their model also may set an example that utility management can replicate.</p>
<p>Warren Buffett claimed that Berkshire Hathaway would invest $10 billion to $15 billion in the utility industry if regulatory barriers could be removed. The industry has remained fragmented for decades because the Public Utility Holding Company Act of 1935 (PUHCA) limited utility mergers to regional markets where the combining companies’ operating assets could be integrated. PUHCA’s “anti-diversification” principle also limited utility acquirers to companies engaged in the utility and related energy businesses, and excluded Berkshire Hathaway from significant utility ownership.</p>
<p>Now that PUHCA has been repealed, private equity and infrastructure funds have become active in the market. The fund manager collects management fees, called the “carry” (typically 20 percent of fund earnings) and may earn additional fees from syndicating fund debt. The sponsor also may earn large profits on its equity investment in a fund. Like any fund manager, the more assets under management, the greater the fees. This powerful incentive has driven fund sponsors to develop an acquisition vehicle that, coupled with a capable utility management team, can be used to acquire and roll up several utilities.</p>
<p>But financial acquirers face a higher hurdle than traditional utility acquirers because their reputation for seeking out-sized returns on highly leveraged, short-term investments doesn’t play well in Peoria. They need to move beyond that reputation to be effective in consolidating the utility industry. It may be, therefore, that TXU has greater value to TPG and KKR than is apparent merely by looking at TXU’s financials, because TXU may serve as a hub from which to launch future utility acquisitions.</p>
<h4>Serving Many Masters</h4>
<p>The Maryland legislature’s recent attempt to fire its Public Service Commission members after they approved substantial rate increases shows that regulators, although normally independent, still must concern themselves with politics. As quasi-public entities, utilities are fully integrated into the community. South Carolina Electric and Gas Co., for example, was required to run the Columbia, S.C., metropolitan bus system on a subsidized basis as a condition of its franchise. Utility service to low-income consumers and energy efficiency programs may be subsidized through rate design. Charitable contributions to community causes are expected, and a utility’s large workforce, payroll, and tax payments provide important support to the local economy.</p>
<p>Regulators want reliable service, reasonable utility rates, and no surprises from their local utilities. Investors want returns that are at least proportionate to risks. Utility management seeks the flexibility to maximize profits, compensation, and benefits similar to unregulated industries, and the opportunity to advance in the organization. Labor seeks job security, competitive pay and benefits, and the opportunity for training and advancement. Gluing a merger together in this environment is tough.</p>
<p>Utility management has experience balancing these competing relationships, and offers an intimate knowledge of the local regulatory and legislative environment. Private-equity funds provide access to capital. They also have a deserved reputation as short-term profit maximizers. In January 2005, TPG and KKR closed on the $3.5 billion acquisition of Texas Genco from CenterPoint Energy. Barely a year later, in February 2006, they sold Texas Genco to NRG for $5.8 billion. Despite this reputation, some funds now are claiming to be interested in stable long-term infrastructure investments.</p>
<p>There may be truth to this claim. Former U.S. Treasury Secretary and former World Bank Chief Economist Lawrence Summers recommends that developing countries such as China, whose central bank holds billions of dollars in U.S. Treasuries returning about 2 percent after inflation, move some of their investment funds into higher-paying stocks. Holders of petrodollars invested in U.S. Treasuries are in a similar position. Don’t expect China’s central bankers, however, to leap into the stock market, either in China or the United States. They want to park money in high-quality infrastructure investments and to acquire other assets, such as oil reserves. The failed acquisition of Unocal Corp. by China’s CNOOC, and the fiasco involving the sale of several United States ports to Dubai Ports World, illustrate the difficulties in pursuing direct infrastructure investments in this country. Private-equity funds provide a measure of diversification and are a useful intermediary. Cue the bankers to develop a product for these wealthy investors.</p>
<p>Strong utility management and patient money form the basis of a utility roll-up machine. A roll-up machine propagates best utility operating and financial practices in a holding company system, addresses the inherent conflicts present in regulated utilities, and makes deals easier and faster to conclude. The roll-up model acknowledges that long-term performance in the consumers’ interest is the basis upon which regulators award reasonable returns on capital.</p>
<p>Because the objective of a roll-up machine is to generate the highest long-term risk-adjusted returns, as opposed to total returns, it follows avenues to improve returns that are aligned with the interests of regulators and labor, and consistent with environmentally responsible behavior. Reductions in financial and regulatory risk, for example, increase risk-adjusted returns for investors, even if the book return on equity remains unchanged.</p>
<h4>Once Burned, Twice Shy</h4>
<p>Regulators, with their varied responsibilities, cannot monitor and understand a particular utility or holding company group nearly as well as its management. Regulators usually learn of serious problems after the damage is done and it is time to clean up the mess. When NUI Corp.’s failed diversification threatened its utility subsidiary Elizabethtown Gas Co. (ETG), New Jersey regulators understandably were frustrated:</p>
<p>ETG enters the process with credit ratings below investment grade, restricted access to capital markets, very high interest rates on existing lines of credit, significant prepayment burdens under its gas procurement arrangements, and a serious need to re-establish the trust and confidence of ratepayers, bondholders, and investors. The board must note and strongly emphasize that NUI Corp. caused these problems.<sup>1 </sup></p>
<p>Increasingly cautious, regulators are wary of the pressures on management to improve returns by aggressively cutting costs and increasing financial leverage. They may impose a spider’s web of commitments, audits, and reports to protect consumers’ interest in long-term, reasonably priced service. Regulators recognize the limits of their supervisory powers and want utilities to be owned and operated by investors and management they can trust—trust based in the knowledge that investor and management interests are aligned with the consumers’ interest in reliable, low-cost utility service for years to come.</p>
<p>The lack of “institutional trust” was key to the failure of the proposed acquisition of UniSource Energy Corp. by KKR and co-investors J.P. Morgan Partners and Wachovia Capital Partners. The investors promised to improve the capital structure and liquidity of UniSource’s subsidiary, Tucson Electric Power Co. (TEP), and to retain local management and a local presence. The investors also built a “ring fence”—a collection of terms and commitments designed to safeguard the integrity of the utility—around TEP.</p>
<p>In this case, the Arizona Corporation Commission (ACC) reviewed the deal under a “net-benefits” standard. An “in-the-public-interest” standard merely requires a showing of “no harm” from the transaction, but “net benefits” requires investors to demonstrate that the public interest will be advanced by the transaction. The ACC faulted the non-investment-grade rating of the acquisition debt, stating that high leverage would lead to increased utility cash flows and expense cutting, resulting in negative effects on service quality and safety. The ACC also faulted the general partner’s lack of utility experience and questioned the investors’ commitment to preserving service quality. The ACC also was troubled by the lack of transparency of the limited partnership acquisition vehicle. “The investors’ refusal to disclose certain materials does not give us confidence that the relationship between the commission and the investors would enable the commission to retain the same level of oversight that currently exists.”<sup>2 </sup></p>
<p>We cannot quantify the risks from a utility change in ownership. But it can be said with certainty that their perceived magnitude to regulators increases with their level of distrust of the investor group. The perceived risks must be more than offset by benefits to satisfy the net-benefits standard. Tangible benefits attributable to the transaction, such as rate credits and commitments to future utility investments, generally are required. Financial investors, with reputations for highly leveraged capital structures and aggressive cost cutting, have a particularly high “trust hurdle” to overcome.</p>
<p>In the TXU transaction, leverage again has become an issue, and the acquirers are attempting to sidestep concerns by pointing out that none of the additional debt will be placed on TXU Delivery, the rate-regulated utility. Acquirers with a trust deficit generally must offer more tangible benefits than other acquirers to establish that a proposed transaction results in net benefits. Indeed the hurdle may get so high that it kills the deal. In contrast, utility management with a track record of sound utility operations, community responsibility, and financial prudence will help the financial acquirer to bridge the trust gap if regulators can be ensured that the utility management team will continue to be fully involved in decisions affecting operations and capital allocation.</p>
<p>Although yet to be completed, NorthWestern Corp.’s acquisition by the Australian fund Babcock and Brown Infrastructure provides another illustration of efforts to address the trust hurdle. Made wary by NorthWestern’s recent bankruptcy, the regulatory reception has not been warm. “The deal will receive severe scrutiny. [Babcock and Brown] is a company we know nothing about. … This is an attractive deal to shareholders, but it may not be the most attractive alternative for Montana,” noted Ted Schneider, a member of the Montana Public Service Commission.<sup>3 </sup>Babcock and Brown has emphasized its commitment to long-term ownership, retention of NorthWestern’s employees and management, and its desire to provide capital for utility infrastructure additions.<sup>4 </sup>Its CEO has met with employees, retirees and community leaders and has stressed his firm’s intentions as a good steward.</p>
<p>“We want NorthWestern Energy’s customers and regulators to be assured of our commitment to being a long-term investor. We understand the importance of maintaining infrastructure and ensuring that NorthWestern continues to provide safe, reliable electricity and natural gas service at reasonable prices.”<sup>5</sup></p>
<h4>Bringing Management And Labor Together</h4>
<p>No matter how polite the euphemism—“operating synergies,” “workforce reductions,” “terminations,” “pink slips,” or “firings”—state regulators will consider the impact on labor when determining whether a transaction furthers the public interest.<sup>6 </sup>A high-performance company relies on its workforce for success, and even if labor is not legally a stakeholder in a merger proceeding, investors cannot afford to fumble their approach to labor.</p>
<p>In the late 2004 acquisition by AGL Resources Inc. (AGLR) of NUI Utilities, the New Jersey Board of Public Utilities observed:</p>
<p>While petitioners do anticipate the elimination of redundancies … petitioners will honor all existing NUI bargaining agreements. Petitioners also assert that employees will benefit from the merger due to AGLR’s financial strength and stability, particularly with respect to the employee pension plan and in the form of enhanced professional opportunities and training.<sup>7</sup></p>
<p>The case provides insights into managing labor issues during a utility merger.</p>
<p>• Job reductions should appear even-handed. AGLR explained that the elimination of redundant employees would be focused at the executive and management levels.</p>
<p>• Make clear your commitment to honor collective-bargaining agreements. Acceptance of these contracts sets the right tone for subsequent discussions.</p>
<p>• Be honest about reductions in rank-and-file positions and contrast those losses with planned improvements in service quality and technology.</p>
<p>• Provide job training for employees of the acquired company to demonstrate increased opportunities within the combined company.</p>
<p>• Fund programs to assist those that are terminated. Design the program with the input of employee representatives.</p>
<p>• Demonstrate the acquirer’s corporate responsibility. A target’s underfunded pension plan is a good opportunity to demonstrate tangibly that the acquirer’s strong credit will benefit the company and its employees.</p>
<p>Union leaders talk to each other. The reputations of utility management and the potential acquirer are subjects of discussion. Utility management in good standing with labor is valuable to an acquirer because it eases the acquisition process and drives future productivity.</p>
<h4>Structural Trust</h4>
<p>There are other aspects of a roll-up machine that address regulators’ concerns while creating the high-quality investment sought by infrastructure investors. Utility management has a role in implementing these features:</p>
<p>• Ring-fencing best practices;</p>
<p>• A long-term investment strategy; and</p>
<p>• An ownership structure designed to protect the financial soundness of the utility.</p>
<p><strong>Build a Ring Fence.</strong> Adopt ring-fencing “best practices” to insulate utilities from the risks of nonutility businesses and promote that ring fence with regulators and other stakeholders. This point of differentiation will distinguish your management team from most utilities and holding companies. Just as investors find comfort in a company with the best corporate-governance practices, regulators will be reassured by a solid ring fence. Both increase credibility with stakeholders.</p>
<p>A ring-fencing program communicates to regulators that utility management and the acquirers have no intention of using the public utility to cross-subsidize non-utility businesses. Ring-fencing commitments nearly are universal in utility acquisition transactions, especially now that PUHCA protections are no longer in effect. Proactively designing an effective ring-fencing program for a group of affiliated companies may avoid a more onerous program imposed by regulators or consumers’ counsel.</p>
<p>An effective ring fence should: (1) monitor affiliate transactions; (2) maintain separate credit ratings and bank accounts for utility subsidiaries; (3) restrict inter-affiliate financings so utilities pay no more than market rates for loans, do not loan funds to affiliates, and do not use utility assets to raise funds to support non-utility businesses; (4) restrict diversification so utilities cannot conduct nonutility business either directly or through utility subsidiaries; and (5) set minimum utility equity levels and dividend limits to maintain sound capitalization and operating liquidity. Ring fencing required by the Oregon Public Utility Commission at the time Enron Corp. acquired Portland General Electric Co. widely was credited with protecting the utility when its parent collapsed spectacularly (and unexpectedly) into bankruptcy.</p>
<p><strong>A Long-Term Investor, and Proud of It.</strong> In Warren Buffett’s view, utility investing is “not a way to get rich. It’s a way to stay rich.”<sup>8</sup> Although financial acquirers generally are thought to have institutional incentives fundamentally at odds with long-term sound utility ownership and management, Buffett is a notable exception. His “halo” has a lot to do with his plain-talking Midwestern character and his buy-and-hold investment style.</p>
<p>Changing perceptions is largely the acquirer’s job. It begins with straightforward public statements about the motives and objectives for the particular transaction. The acquirer’s private actions, such as assumptions made in financial models (e.g., exit strategy), must be consistent with its public statements; there is a good likelihood that transaction work papers will be discovered during the regulatory approval process. Acquirers with long-term investment horizons and an interest in reasonable and predictable, if unspectacular, returns from infrastructure investments should find this easy to do. Acquirers with venture capital expectations should not be shopping for utilities.</p>
<p>Utility management can help by developing utility service quality commitments that demonstrate tangibly the acquirer’s intention to operate the target to measurable levels of service (e.g., outage frequency and duration, number of customer calls unanswered, etc.). The commitment should include consequences if the service objectives are not met.</p>
<p>Assuage regulators’ fears that they cannot monitor all the decisions that affect long-term service quality. Use performance benchmarking to evaluate service quality and share the results with regulators. Institute procedures to share basic financial and operating information with PUC staff on a real-time basis, thereby increasing transparency and trust and lessening concerns about utility under-investment and holding- company diversification. Regulators are most in fear of being surprised by deteriorating financial conditions after it is too late to take corrective action. Provide regulators with brief, confidential real-time reports of basic operating and financial information to lessen that worry.</p>
<p>The selection of directors for the utility and holding company boards is another opportunity to demonstrate a long-term commitment to the community and to improve trust. As with any company, a utility’s board should be comprised of people of varied backgrounds, breadth of experience, and opinions. State regulators prefer directors who have utility expertise and who also are state residents. Regulators favor board members who are independent of the acquirer and its affiliates, and see them as guardians of the utility’s interests when they conflict with the holding company’s interests. In the TXU transaction, the acquirers have identified Donald Evans, former U.S. Secretary of Commerce, James Huffines, chairman of the University of Texas Board of Regents, and Lyndon L. Olson Jr., former Texas state representative and former U.S. ambassador to Sweden, as new members of the board. Former Secretary of State James Baker also has agreed to serve as “advisory chairman” to the investment consortium.</p>
<p><strong>Diagramming the Roll-up Machine.</strong> A utility ownership structure that, because of its inherent incentives, automatically protects the financial soundness of the utility will lower the trust hurdle. The elements of this structure are: (1) separation between utility and nonutility businesses; (2) separate credit ratings and financing capacity for the utility business; and (3) a securities structure that gives “passive” shareholders a preferred claim to the earnings of the business, and managing shareholders an incentive to increase risk-adjusted returns. A structure that achieves these aims is outlined below.</p>
<p>In Figure 2, non-utility and public utility subsidiaries in the same holding company group are held by separate intermediate holding companies. At a minimum, public utilities should not have non-utility subsidiaries. Separation keeps non-utility businesses from directly impacting utility financial health. Locating several small utilities under a pure utility holding company may improve their ability to efficiently issue securities. A pure utility holding company would have first claim to the shares and earnings of its utility subsidiaries, and may earn a better credit rating than the one assigned to a higher-level holding company. Financial wizardry in this case benefits consumers and investors rather than placing them at increased risk and provides a tangible benefit from consolidation.</p>
<p>HoldCo’s securities are held by managing and non-managing members. The interests held by non-managing members entitle them to a preferred distribution of HoldCo’s earnings. If HoldCo’s earnings exceed the hurdle rate set for the non-managing members’ interest, the managing member’s interest will earn a premium return. Non-managing members also have limited rights to participate in the management of HoldCo, including full access to books and records, and veto rights for transactions that fundamentally affect their investment interest. However, curtailment of distributions to the non-managing members, or a drop in Utility HoldCo’s credit ratings to less than investment grade, should trigger greater management participation by the non-managing members. This encourages the non-managing members to influence the managing member to promote sound management of Utility HoldCo and its subsidiaries given that Utility HoldCo will be a substantial, perhaps dominant, source of the group’s revenues. Last, the managing members’ incentive structure should be designed to maximize risk-adjusted returns, while discouraging undue risk taking with the utilities.</p>
<p>The company that comes closest to operating under this model is MidAmerican Energy Holdings Co. (MEHC). MEHC distinguishes itself from other acquirers by leveraging Warren Buffett’s reputation for long-term, buy-and-hold investing and Berkshire Hathaway’s ample capital reserves. For example, MEHC has committed substantial funds for capital improvements at its new PacifiCorp subsidiary. Many acquirer’s promise rate freezes or reductions only when pushed to demonstrate the benefits of an acquisition. But in the PacifiCorp transaction, MEHC demonstrated its long-term vision to improve PacifiCorp’s infrastructure through needed investments in generation and transmission facilities. It also appealed to utility commissions in Oregon and Washington with its demonstrated commitment to building renewable generating facilities. The commitment is plausible because Mid-American Energy Co. is recognized as a leader in installed wind generation among regulated U.S. utilities. MEHC also has adopted ring-fencing protections for its utility subsidiaries, and has a corporate structure that separates utility and nonutility businesses. These factors give MEHC credibility with regulators and other stakeholders, and provide Berkshire Hathaway with an effective corporate and management structure to quickly and efficiently deploy capital for utility industry consolidation.</p>
<p>TXU’s acquirers are making similar efforts. They have committed to invest $400 million in demand-side management programs, and have sought to exemplify environmental leadership by reducing the number of coal plants that TXU will build and by supporting a mandatory cap-and-trade program to regulate CO<sub>2</sub> emissions.</p>
<h4>Roll It Up</h4>
<p>Managing and building trust is key to a successful acquisition. Trust can bring a utility’s management and regulators closer to creative regulatory solutions, such as performance-based rates that allow the acquirer to capture synergies from consolidation. Reducing the risks that worry regulators (and other stakeholders like environmentalists) increases an acquirer’s credibility and speeds regulatory approvals, allowing faster growth. Resolving competing interests builds trust equity, and that means giving up less value to demonstrate a net benefit from a proposed acquisition. The TXU deal has made headlines because the acquirers and TXU’s management have been innovative in gaining environmentalists as allies rather than opponents.</p>
<p>The bankers courting C. John Wilder and TXU Corp. are self-aware. They know what they don’t know about running a utility. KKR’s Henry Kravis said that while working with Wilder, the acquirers “have developed a new vision … of how we can turn TXU into a more innovative, customer-centric, environmentally friendly company, and we plan to work with management to implement it.” Institutional Investor magazine has bestowed multiple honors on Wilder, including naming him the best CEO in the electric power sector in 2004 and 2005. He has completed a turnaround plan for TXU ahead of schedule, the company’s generating units perform at high capacity factors, and TXU is well on its way toward its goal of “industry-leading, customer-focused financial and operational performance.”</p>
<p>Venture capitalists follow the maxim that you don’t buy the technology, you buy the management team. Wilder has not committed to stay on. He avoids conflicts that way. But it seems clear that bankers are backing C. John Wilder and his management team as much as TXU. They are nurturing a seedling that will someday grow into a utility roll-up machine.</p>
<p> </p>
<h4>Endnotes:</h4>
<p>1. In the Matter of the Petition of NUI Utilities, Inc. (d/b/a Elizabethtown Gas Co.) and AGL Resources, Inc. for Authority Under N.J.S.A. 48:2-51.1 and N.J.S.A. 48:3-10 of a Change in Ownership and Control, Docket No. GM04070721 (Nov. 17, 2004) (“NUI Utilities”) at 14-15.</p>
<p>2. In the Matter of the Reorganization of UniSource Energy Corporation, Arizona Corporation Commission, Decision No. 67454 (Jan. 4, 2005).</p>
<p>3. “NorthWestern Explains Why it Took BBI Offer,” Electric Utility Week (May 8, 2006) at 12.</p>
<p>4. Id.</p>
<p>5. NorthWestern Corp. Press Release; NorthWestern Energy, Babcock &amp; Brown Infrastructure Receive Transaction Approval From Federal Energy Regulatory Commission (Oct. 19, 2006).</p>
<p>6. See e.g., N.J.S.A. 48:2-51.1, which provides in relevant part, “In considering a request for approval of an acquisition of control, the board shall evaluate the impact of the acquisition on competition, on the rates of ratepayers affected by the acquisition of control, on the employees of the affected public utility or utilities, and on the provision of safe and adequate utility service at just and reasonable rates.”</p>
<p>7. NUI Utilities at 17.</p>
<p>8. Electric Utility Week, Nov. 20, 2006 at 2.</p>
</div></div></div><div class="field field-name-field-article-category field-type-taxonomy-term-reference field-label-above clearfix"><h3 class="field-label">Category (Actual): </h3><ul class="links"><li class="taxonomy-term-reference-0"><a href="/article-categories/mergers-acquisitions">Mergers &amp; Acquisitions</a></li></ul></div><div class="field field-name-field-members-only field-type-list-boolean field-label-above"><div class="field-label">Viewable to All?:&nbsp;</div><div class="field-items"><div class="field-item even"></div></div></div><div class="field field-name-field-article-featured field-type-list-boolean field-label-above"><div class="field-label">Is Featured?:&nbsp;</div><div class="field-items"><div class="field-item even"></div></div></div><div class="field field-name-field-image-picture field-type-image field-label-above"><div class="field-label">Image Picture:&nbsp;</div><div class="field-items"><div class="field-item even"><img src="http://www.fortnightly.com/sites/default/files/article_images/0705/images/0705-FEA3.jpg" width="1111" height="1500" alt="" /></div></div></div><div class="field field-name-field-fortnightly-40 field-type-list-boolean field-label-above"><div class="field-label">Is Fortnightly 40?:&nbsp;</div><div class="field-items"><div class="field-item even"></div></div></div><div class="field field-name-field-law-lawyers field-type-list-boolean field-label-above"><div class="field-label">Is Law &amp; Lawyers:&nbsp;</div><div class="field-items"><div class="field-item even"></div></div></div><div class="field field-name-field-tags field-type-taxonomy-term-reference field-label-above clearfix">
<div class="field-label">Tags:&nbsp;</div>
<div class="field-items">
<a href="/tags/agl-resources">AGL Resources</a><span class="pur_comma">, </span><a href="/tags/bankruptcy">bankruptcy</a><span class="pur_comma">, </span><a href="/tags/cash-flow">cash flow</a><span class="pur_comma">, </span><a href="/tags/centerpoint-energy-0">CenterPoint Energy</a><span class="pur_comma">, </span><a href="/tags/china">China</a><span class="pur_comma">, </span><a href="/tags/commission">Commission</a><span class="pur_comma">, </span><a href="/tags/federal-energy-regulatory-commission">Federal Energy Regulatory Commission</a><span class="pur_comma">, </span><a href="/tags/general-electric">General Electric</a><span class="pur_comma">, </span><a href="/tags/infrastructure">Infrastructure</a><span class="pur_comma">, </span><a href="/tags/jp-morgan">J.P. Morgan</a><span class="pur_comma">, </span><a href="/tags/long-term-performance">long-term performance</a><span class="pur_comma">, </span><a href="/tags/midamerican">MidAmerican</a><span class="pur_comma">, </span><a href="/tags/midamerican-energy">MidAmerican Energy</a><span class="pur_comma">, </span><a href="/tags/midamerican-energy-holdings">MidAmerican Energy Holdings</a><span class="pur_comma">, </span><a href="/tags/new-jersey">New Jersey</a><span class="pur_comma">, </span><a href="/tags/new-jersey-board-public-utilities">New Jersey Board of Public Utilities</a><span class="pur_comma">, </span><a href="/tags/northwestern-energy">NorthWestern Energy</a><span class="pur_comma">, </span><a href="/tags/nrg">NRG</a><span class="pur_comma">, </span><a href="/tags/pacificorp">PacifiCorp</a><span class="pur_comma">, </span><a href="/tags/portland-general-electric">Portland General Electric</a><span class="pur_comma">, </span><a href="/tags/schneider">Schneider</a><span class="pur_comma">, </span><a href="/tags/south-carolina-electric-and-gas">South Carolina Electric and Gas</a><span class="pur_comma">, </span><a href="/tags/tep">TEP</a><span class="pur_comma">, </span><a href="/tags/tucson-electric-power">Tucson Electric Power</a><span class="pur_comma">, </span><a href="/tags/unisource-energy">UniSource Energy</a><span class="pur_comma">, </span><a href="/tags/university-texas">University of Texas</a> </div>
</div>
Tue, 01 May 2007 04:00:00 +0000puradmin13952 at http://www.fortnightly.comMerger Frenzyhttp://www.fortnightly.com/fortnightly/2007/04/merger-frenzy
<div class="field field-name-field-import-deck field-type-text-long field-label-inline clearfix"><div class="field-label">Deck:&nbsp;</div><div class="field-items"><div class="field-item even"><p>KKR’s leveraged buyout of TXU might be the first of many private-equity M&amp;A deals, but traditional utility mergers also will increase.</p>
</div></div></div><div class="field field-name-field-import-byline field-type-text-long field-label-inline clearfix"><div class="field-label">Byline:&nbsp;</div><div class="field-items"><div class="field-item even"><p>Richard Stavros</p>
</div></div></div><div class="field field-name-field-import-category field-type-text field-label-inline clearfix"><div class="field-label">Category:&nbsp;</div><div class="field-items"><div class="field-item even">Business &amp; Money</div></div></div><div class="field field-name-field-import-bio field-type-text-long field-label-inline clearfix"><div class="field-label">Author Bio:&nbsp;</div><div class="field-items"><div class="field-item even"><p><b>Richard Stavros</b> is executive editor of <i>Public Utilities Fortnightly.</i></p>
</div></div></div><div class="field field-name-field-import-volume field-type-node-reference field-label-inline clearfix"><div class="field-label">Magazine Volume:&nbsp;</div><div class="field-items"><div class="field-item even">Fortnightly Magazine - April 2007</div></div></div><div class="field field-name-field-import-image field-type-image field-label-above"><div class="field-label">Image:&nbsp;</div><div class="field-items"><div class="field-item even"><img src="http://www.fortnightly.com/sites/default/files/article_images/0704/images/0704-BIZ-fig1.jpg" width="1331" height="834" alt="" /></div><div class="field-item odd"><img src="http://www.fortnightly.com/sites/default/files/article_images/0704/images/0704-BIZ-fig2.jpg" width="1336" height="840" alt="" /></div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even"><p>The numbers boggle the mind. Private-equity firms raised $221 billion in 2006 and have $2 trillion in purchasing power combined with their other assets. You read that right: $2 trillion. For perspective, that was the equivalent of the gross domestic product (GDP) of France in 2005. Oui!</p>
<p>Jeffrey Holzschuh, chairman, global power and utility group, Morgan Stanley, stunned the crowd at the Exnet Annual Utility M&amp;A symposium in New York City earlier this year when outlining just how much money financial firms have accumulated for investment in all sectors of the economy. Incredibly, this is an uptick from the previous year. “Last year I spent most of my time talking about alternative investors and alternative asset classes. I wanted to tell you they are bigger and badder than they were last year,” Holzschuh said.</p>
<p>He’s not kidding. Private-equity deals made up one-fourth of all U.S. mergers and acquisition (M&amp;A) in 2006, Holzschuh said.</p>
<p>Moreover, financial investors like hedge funds could grow to $4 trillion in assets by 2010, and the new-on-the-scene infrastructure funds (which hold assets longer and have a lower return threshold) have raised between $100 billion and $150 billion globally, according to Morgan Stanley. An estimated $1.6 trillion in infrastructure investment is predicted over the next 5 years.</p>
<p>Holzschuh says some of that money most certainly is eyeing utilities. “Why is all this money coming into the space? If you look at the returns <i>(see Figure 1)</i>, it is all about the returns, which are impressive. The yellow lines represent the disclosed reported returns for financial funds and managers. You see some very high numbers. It is pretty understandable when you are putting up to 40 percent more leverage. The normal corporate structure is represented by the S&amp;P 500. Looking at private equity’s returns, you see the affect of both leverage and, obviously, some other skill sets.”</p>
<p>Non-traditional players will have an increased role, he says. “There is just way too much money. They will become more activist as [return on investment] comes down in the general market, and they will put more heat on all of you to generate returns.”</p>
<p>But that’s not all. Holzschuh described how strong performance in stock markets in 2006 drove $3.4 trillion in M&amp;A deals globally, whereas in the utility industry there was $350 billion worth of transactions. “But when you look at the top 10 utility deals in 2006, only two of them were in the U.S.,” he said, adding he believes that balance may change as more international utilities look at U.S. investment.</p>
<p>“The asset split and the separations are going to happen. But people can’t have a strategy that they call M&amp;A. M&amp;A is not a strategy. It is a tactic. You have to have an idea of where you’re going and use it as a tool to get there,” he explained, “If you look at how these splits and separations occur, some of these future mergers will occur along these lines: 1) for regulatory reasons; 2) valuation and credit reasons; 3) environmental pressures; and 4) volatility.”</p>
<h4>Mergers Won’t Be Easy</h4>
<p>If you were a utility executive today, what would you think are the odds of success of completing a merger in this environment?</p>
<p>That was the question posed by J.P. Morgan investment banker Eric O. Fornell to the Exnet conference attendees.</p>
<p>A managing director of the bank’s Energy Investment Banking group, Fornell guesses the odds of an announced transaction ultimately closing are about 75 percent.</p>
<p>“If you were a management team thinking about, ‘do you want to enter in to this,’ is clearly something that you are going to have to think about the money, credibility, and time you’ll have to invest with investors, regulators, and politicians,” he said.</p>
<p>Fornell believes that there may be downward pressure on utility stocks in the next five to 10 years, given current historical highs.</p>
<p>“So, if you think about the future, this is probably a good time—if you’re thinking about maximizing value—to be thinking about a transaction just from a valuation perspective.”</p>
<p>Lazard’s head power and energy investment banker, George Bilicic, also presented at the Exnet conference.</p>
<p>“We continue to believe that the industry will steadily consolidate, while Exelon and FPL are examples of what can go wrong. There are plenty of other examples, such as the Duke-Cinergy deal and the Mid-American and PacifiCorp deal, that stand in stark contrast. Transactions will be able to support only moderate premiums as compared to the high premiums we saw in the late 1990s. We don’t see the emergence of a hostile transaction trend or activist hedge fund that were very active in the PSEG transaction,” Bilicic said.</p>
<p>Furthermore, he says that the renewables, alternative energy, and conservation efforts will dominate strategic thinking this year in terms of why utilities would conduct a transaction. “We believe more than one non-U.S. company will pursue a deal in the U.S. this year,” he added.</p>
<h4>Spinoffs and Separations Revisited</h4>
<p>Wall Street has been going full-tilt in recommending spinoff transactions. Some conference-goers wondered if Wall Street banks had a meeting on separations. At the conference, bankers from Merrill Lynch, Credit Suisse, J.P. Morgan, Lazard and other firms all expressed the need and advantages of utility separation transactions.</p>
<p>This, of course, drew some skepticism from at least one utility conference attendee, given the industry’s past experience with such transactions. Michael Morris, CEO at AEP, said utilities were not really interested in separation transactions from generation from transmission or distribution, or gas from electric. “We don’t see a need for that. If you are an integrated utility today, unless you have huge capital needs or a state law that causes you to break apart your asset base, I don’t see the logic behind it,” he said. Morris predicted one would not see a lot of separation transactions because the aggregated asset base in the vertically integrated model “makes so much sense,” he said.</p>
<p>As far as separating gas from electric, as Duke Energy did in the Spectra transaction, Morris said, “It made a lot of sense to them.”</p>
<p>But the AEP CEO also showed some skepticism related to the resurgence of such separation transactions being pitched by Wall Street.</p>
<p>“I’m always intrigued by those of you in New York City, particularly those of you involved in the investment-banking business. You talk all of us into merging and cross functionalization and how wise that was. Then you come back about four years later and say the market can’t understand the stock and you have to break the company apart.”</p>
<p>Of course, for decades corporate America and Wall Street have gone back and forth between the conglomerate and the pure-play models. It appears the utility industry will be no different. Lazard’s Bilicic laid out the value of a separation transaction: “Separation is a new topic, as many of you are aware because of the Spectra spin. The circumstances in certain states suggest long-term regulatory strategic tension. We think there are three broad categories of companies where separation is relevant.”</p>
<p>The Lazard banker believes separation is warranted for companies that have businesses across the value chain, like Duke Energy with its previous convergence strategy. The second category, Bilicic says, is companies that have deregulated, where the old utility generation is held by a non-regulated affiliate in the same service territory. “The third category is regulated utilities that have built up a non-regulated generation business beyond the regulated service territory,” he says.</p>
<p>“There may be a structurally practical way of separating. There may be capital or credit constraints or drivers of this separation. Last, when one looks at the appeal of separation, it ultimately is going to have to beat the standalone case or other alternatives that are possible.” And there will be many alternatives in the coming years, as billions upon billions in investment dollars are looking to invest in the utilities industry. Some deals may serve the public interest and some may not <i>(see, “A View on the TXU Leverage Buyout”)</i>. What is certain is what choices utilities make will forever change the operational and corporate landscape of the industry.</p>
</div></div></div><div class="field field-name-field-article-category field-type-taxonomy-term-reference field-label-above clearfix"><h3 class="field-label">Category (Actual): </h3><ul class="links"><li class="taxonomy-term-reference-0"><a href="/article-categories/mergers-acquisitions">Mergers &amp; Acquisitions</a></li></ul></div><div class="field field-name-field-members-only field-type-list-boolean field-label-above"><div class="field-label">Viewable to All?:&nbsp;</div><div class="field-items"><div class="field-item even"></div></div></div><div class="field field-name-field-article-featured field-type-list-boolean field-label-above"><div class="field-label">Is Featured?:&nbsp;</div><div class="field-items"><div class="field-item even"></div></div></div><div class="field field-name-field-department field-type-taxonomy-term-reference field-label-above clearfix"><h3 class="field-label">Department: </h3><ul class="links"><li class="taxonomy-term-reference-0"><a href="/department/business-money">Business &amp; Money</a></li></ul></div><div class="field field-name-field-image-picture field-type-image field-label-above"><div class="field-label">Image Picture:&nbsp;</div><div class="field-items"><div class="field-item even"><img src="http://www.fortnightly.com/sites/default/files/article_images/0704/images/0704-cvr.jpg" width="1121" height="1500" alt="" /></div></div></div><div class="field field-name-field-fortnightly-40 field-type-list-boolean field-label-above"><div class="field-label">Is Fortnightly 40?:&nbsp;</div><div class="field-items"><div class="field-item even"></div></div></div><div class="field field-name-field-law-lawyers field-type-list-boolean field-label-above"><div class="field-label">Is Law &amp; Lawyers:&nbsp;</div><div class="field-items"><div class="field-item even"></div></div></div><div class="field field-name-field-tags field-type-taxonomy-term-reference field-label-above clearfix">
<div class="field-label">Tags:&nbsp;</div>
<div class="field-items">
<a href="/tags/aep">AEP</a><span class="pur_comma">, </span><a href="/tags/cinergy">Cinergy</a><span class="pur_comma">, </span><a href="/tags/credit-suisse">Credit Suisse</a><span class="pur_comma">, </span><a href="/tags/duke-energy">Duke Energy</a><span class="pur_comma">, </span><a href="/tags/exelon">Exelon</a><span class="pur_comma">, </span><a href="/tags/george-bilicic">George Bilicic</a><span class="pur_comma">, </span><a href="/tags/jp-morgan">J.P. Morgan</a><span class="pur_comma">, </span><a href="/tags/jp-morgan-0">JP Morgan</a><span class="pur_comma">, </span><a href="/tags/merrill-lynch">Merrill Lynch</a><span class="pur_comma">, </span><a href="/tags/michael-morris">Michael Morris</a><span class="pur_comma">, </span><a href="/tags/morgan-stanley">Morgan Stanley</a><span class="pur_comma">, </span><a href="/tags/pacificorp">PacifiCorp</a> </div>
</div>
Sun, 01 Apr 2007 04:00:00 +0000puradmin14300 at http://www.fortnightly.com